So you are suing a defendant in a Korean Court or you won a judgment in a Korea court? How much interest shall you earn on this judgment? Korea awards different interest rates based in if the judgment is rendered or the judgment is not rendered. Additionally, it is, usually, advisable to include Penalty Damages Clauses to most type of Korean Contractual Agreements.
Pre-Judgment Interest in Korea
Pre-Judgment interest accrues from the date the payment is due. Unless otherwise agree upon by the parties, the applicable statutory interest rate is 6% per annum for commercial claims and 5% per annum for most non-commercial civil claims. Upon judgment, the judgment must be executed. Get yourself a good English-speaking Korean commercial lawyer with experience executing commercial judgments.
Post-Judgment Interest in Korea
After a judgment is rendered by a Korean court, the applicable statutory interest rate is 15% per annum and commences to accrue on the date the judgment is rendered. Post-judgment interest at a rate of 15% per annum may accrue on the date of service of the complaint if the plaintiff prevails, on the merits, in, all claims against the defendant.
Known for his proactive street-smart advice & non-conflicted advocacy, NY Attorney Sean Hayes works with leading retired Korean judges, prosecutors and experienced Korean attorneys in leading contentious and transactional matters in Asia. First non-Korean lawyer employed by the Korean Court System. SeanHayes@ipglegal.com
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