In Korea, after a judgment or order to pay by a court, a plaintiff can collect on an unpaid debt through garnishing wages. Garnishing of wages is normally the best way to guarantee the collection of debt when a debtor doesn’t have real or personal property. Most law firms can perform the service for a modest fee.
Amount that May be Garnished in Korea
- Less than W1.2mil (No wages can be garnished)
- W1.2mil – W2.4mil (Monthly Wage – W1.2mil)
- W2.4mil –W6mil (1/2 Monthly Wage)
- Over W6mil (Half monthly Wage minus W3mil divided by two plus W3mil minus monthly wage)
1. W2,000,000 Monthly Pay (Can garnish monthly W800,000)
2. W3,000,000 Monthly (Can garnish monthly W1,500,000)
3. W5,000,000 Monthly Pay (Can garnish W2,500,000)
4. W6,000,000 Monthly Pay(Can garnish W3,000,000)
5. W12,000,000 Monthly Pay (Can garnish W7.500,000)
6. W20,000,000 Monthly Pay (Can garnish W13,500,000)
The following post was first posed in 2008.
- Debt Collection Cases in Korea on the Rise: Buyers and Sellers Beware
- Calculation of Korean Hourly Wage Rate under the Minimum Wage Act of Korea
- Debt Collection in Korea: Foreign Creditor vs. Bankrupt Korea Debtor
- Collecting a Debt in Korea: Payment Orders are your Friends
- Tax Liability of Controlling Shareholders in a Korean Company: Tax Law Updates
- Ordinary Wages and the Principle of Good Faith in Korea: How long should the principle be applied to Korean CBAs?
- Definition of “Ordinary Wage” in Korea: Korean Employment & Labor Law Basics
- Material Breach of Korean Contracts Under Korean Law: Primary Obligations vs. Secondary Obligations in Korea Courts
- Corporate Bankruptcy/Restructuring in Korea: The Line Begins Here (Korea’s Chapter 7 & 11 Bankruptcy)
- Provisional Attachments of Assets in Pending Litigation in Korea Courts