Services
Find out more about our consultancy services. We are committed for success of our clients, not our success. Our financial and business consultants find most optimal and customized solution for each and every client. Our team is working diligently with professional excellence and solid discipline.
01
The standard flow
for debt collection in Korea
1. Demand letter
We send a demand letter to the debtor by a contents-certified mail. The Commercial Act allows a 6% statutory annual interest rate to be applied to a claim arising from commercial transactions.
2. Negotiating
We settle most of the cases out of court and without the need for judicial intervention.
As the case may be, however, we try to win a concession from the debtor by an agreement out of court.
3. Issuing proceedings
If we do need to take the matter to court, we are able to mediate and litigate on your behalf.
4. Enforcement
If the debtor fails to settle the debt following court proceedings, there are a variety of options available.
02
Enforcement of a monetary judgment
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1. Filing a petition for attachment or seizure
2. Seizure and judicial auction of immovable property, movable property (such as a car)
3. Attachment an execution of the debtor’s rights against a third party
4. Conversion of the assets into money
5. Distribution of money
03
Optional debt collection services
1. Company searches.
2. Residential address searches.
3. Asset searches.
4. Bar association inquiries.
5. Personal visits.
6. Provisional attachment.
04
Enforcement of Foreign Judgements
1. Types of enforceable order
Both foreign monetary and non-monetary (e.g., family law matters) judgments are enforceable in Korea.
2. What the court reviews
The enforcing court is not allowed to review the substance of the foreign judgment. It can only review the judgment whether it is satisfied with the requirements under Article 217 of the Civil Procedure Act. The most problematic part [HB1] of them is that “mutual guarantee exists” between Korea and the country. In this regard, the courts have approved of judgments made, among other jurisdictions, in England & Wales, Hong Kong, Singapore, the State of New York, and the State of California, China, Russia.
3. Procedures
The judgment creditor must take two steps to enforce a foreign judgment, namely, (1) applying to the court for an enforcement judgment and (2) applying for enforcement proceedings.
An action seeking an enforcement judgment (above (1)) falls under the jurisdiction of the district court with jurisdiction over the location of the general venue of the judgment debtor (e.g., the registered address of a debtor company). Compulsory enforcement proceedings (above (2)) are the same as for domestic judgments, which only take a matter of days.
4. Limitation period
The limitation period is ten years from the day after the foreign judgment has become final and binding.
5. Fees and disbursements
The court fee for an application to enforce a judgment depends on the value of the claim.
Depending on the nature of obligations or assets against which compulsory enforcement is implemented, fees for registration (e.g., if the asset is real property) or court enforcement officers (e.g., if the assets are movables) may be payable. Our fees (attorney’s costs) are also needed.
6. Time
Applications for both an enforcement judgment and enforcement proceedings are made with notice and will usually take between six months to a year.