Apartment rental contract ending trap

Hello everyone,

I have rented an apartment in Kyoto for two years and the contract is going to end on 16th January 2020. The contract is the 2-year contract, the period is 17th January 2018 to 16th January 2020 .As mentioned in the contract I have to inform two months before if I'm not going to re-contract which I have done.After I inform the landlord now saying if I leave 16th January 2020 which is the end date of the contract, I have to pay the contract cancelation penalty (150,000 JPY) . because the 16th of January 2020 is still in the contract period. If I leave 17th January 2020, then I have to pay a re-contract fee of 70,000 JPY + 110000 JPY + fire insurance.

I dod not see any logic behind, for me It's totally a trap & its unfair any of you guys have the same experience? Any guidance is much appreciated.

Correction!
If I leave 17th January 2020, then I have to pay a re-contract fee of 70,000 JPY + 11,000 JPY + fire insurance.

To me it sounds like he is trying to trick you into staying till 17.1.2020 which would probably prolong the contract for another two years which would mean you would have to pay the rent for another two years or perhaps pay the real "cancellation fee" 150.000 JPY.
But in this case the rental contract was for a fixed period of time so there is no need for "cancellation", it will end by itself on the last day of contract (16.1.2020). At the same time it is your duty to leave the apartment no later than the last day of contract.
And I hope you have some proof of notifying your landlord about not wanting to prolong the contract.

Thank you haens,
Yes, I have informed the landlord by email and she has replied to that also saying this penalty thing. And I have put leave notice into the "apartment management letter box" which she advised me to do.
And one month ago, I have informed the property agency also.
Tomorrow I will visit property agency and will try to clarify this.

Tell them you will hire an lawyer and they may back off. But it may affect your ability to get another place to rent later.
They are just taking advantage of foreigners.

Today's update:

I went to the agency that mediates this contract, and the agency called the owner, still the owner is maintaining the same and demanding money. Agency also mentioned they have never seen this kind of situation.

Then, with the help of my Japanese friend, we contacted the city council and they are also wondering about this situation and the condition. And they advised us to inform the owner "We are not going to pay any money".

Please continue to post if any of you guys faced a similar situation.

Never heard of anything like this. You give proper notice, then you vacate ON (or by) the last day of the contract, and there should not be no cancellation fee; you agreed to let the contract expire and end.

I guess the landlord is simply out to get your money - if the city hall and the estate agency are on your side, this should work out ok for you. Best wishes!

Don't pay.
Let the contract lapse.