The following post appeared in the Korea Times and was entitled Enforcement of U.S., European and other Foreign Court Judgments in Korean Courts. For a more comprehensive article on this issue please see: Execution of Foreign Judgments in Korean Courts and Recognition & Enforcement of Foreign Judgment in Korea.
Dear Sean, I have a judgment in a New York court against a Korean importer. I shipped my goods to the company and the company refuses to answer my calls, e-mails, and letters. I sued and won a default judgment in a New York State court. No assets were found in the U.S. I believe the company have assets in Korea. How can I enforce the judgment? / Cashed out in New York.
Dear Cashed out in New York: A Korean court should enforce your judgment. Most foreign commercial judgments are enforced with little difficulty.
A Korean court requires proper service of process under the Hague Convention, that the New York court had jurisdiction over the dispute, that the New York courts enforce Korean judgments (reciprocity), and also that the judgment is not contrary to Korean “public order and good morals.” Often snags occur during the enforcement of family court judgments because of the courts sometimes-conservative stance on divorce and custody. However, things have, recently, improved.
Also, a Korean court is sometimes leery of enforcing a default judgment, since the Korean party has not had the opportunity to appear and state his case. This sometimes leads to the foreign party being required to sue based on a normal action in a Korean court, a process that is often less time-consuming and costly than in New York.
Normally, it is advisable to first obtain a preliminary (provisional) attachment and then file to enforce the New York judgment if the company is not a well-established company, since I all too often hear of cases where a company, in a troubled financial state, quickly spends down assets in order to avoid outstanding debts.
When navigating the enforcement of judgments in Korea a competent firm with significant experience handling foreign clients is necessary.
Appeared in the Korea Times on September 22, 2007
by Sean Hayes
To Schedule a Call with Sean Hayes, please Schedule a Zoom Call
- Korean Court Recognition and Enforcement of American, European & other Court Judgments in Korean Courts
- Enforcement of Arbitral Awards in Korean Courts: Arbitration Law Basics
- Enforcing Punitive & Liquidated Damages Awards against Korean Companies via Contracts with Foreign Subsidiaries of Korean Companies
- Does a Korean court have the power to issue a preliminary attachment on Korean assets stemming from a foreign court claim?
- U.S. Court Refuses to Enforce Taiwan Arbitral Award: Lesson for Drafting Arbitration Clauses in Korea
- Provisional Attachments of Assets in Pending Litigation in Korea Courts
- Is a Bankruptcy in the U.S. “Effective” on Assets in Korea?: Korean Bankruptcy Law Basics
- Korean Civil Litigation Pre-Judgment & Post-Judgment Interest Awarded by Korean Courts
- How Foreign Companies and Individuals can Collect Debts from Debtors in South Korea?
- Civil Court Proceedings in Korean Courts: Korean Civil Litigation Basics