Korean Supreme Court Affirms Disability Discrimination Holding Against Korea Post

In September of 2023, the Korean Supreme Court delivered a landmark ruling in the area of guardianship and disability rights in Korea. In the Korean Supreme Court Case 2020Da301308, the Supreme Court of Korea held that a state-run entity, the Korea Post, engaged in discriminatory practices by imposing additional restrictions on an individual under limited adult guardianship beyond those set by the Korean Family Court.

This ruling strengthens core principles of the adult guardianship system: respect for autonomy, proportional intervention, and institutional accountability under the Anti-Discrimination Against Persons with Disabilities Act (장애인차별금지법).

Korean Supreme Court Affirms Disability Discrimination by Korea Post

Background to the Korea Post Disability Discrimination Case

The plaintiff was using a Korea Post bank account and handling daily financial matters without issue. After a Family Court in Korea placed the person under limited guardianship, thus limiting the individual’s’ legal capacity by requiring the consent of the limited guardian for any withdrawals or transfers totaling more than KRW 1 million within a 30-day period, the Korea Post changed its rules. The Korea Post prohibited the plaintiff from conducting any financial transactions without the guardian and required all transactions to be made in person at a bank counter. Thus, the plaintiff was unable to utilize the online banking system and ATMs.

Supreme Court’s Decision on Korea Post Disability Discrimination Case

The Supreme Court affirmed the lower court rulings and clarified several key points:

1. Discrimination Under the Disability Discrimination Act of Korea

The Korean Supreme Court found that the restrictions requiring the customer to be accompanied by a limited guardian and to conduct transactions only at a bank counter were discrimination under Article 4(1)(1) of the Disability Discrimination Act of Korea. The provision prohibits treating a person with a disability unfairly through restriction, exclusion, separation, or denial without justifiable reason.

2. No Justifiable Reason

The Korea Post argued that it required the guardian’s consent for all financial transactions because the scope of legal acts requiring consent had not been clearly defined by a Korean Family Court. However, the Court emphasized that Korea’s adult guardianship system is based on respecting the right to self-determination and promoting social participation to the fullest extent possible, even for those with reduced decision-making capacity.  The bank’s blanket restriction went against the core principles of the guardianship system.

Practical Significance

This ruling reinforces that adult guardianship is meant to maximize autonomy and make full use of an individual’s remaining capacities.  Instead of applying one-size-fits-all restrictions, institutions must adopt individualized approaches based on the person’s abilities and circumstances. The Court’s order went beyond mere monetary compensation. The order of the Korean court required active measures to stop the discrimination and ensure access, thereby affirming the effectiveness of Article 48 of the Act as a meaningful remedy for persons with disabilities.

The decision recognizes that access to financial services is a basic right for persons with disabilities. It clarified that banks and financial institutions have a legal duty to provide reasonable accommodations, taking into account the specific needs of their disabled customers.

by So Young YOON (Korean Attorney-at-Law)
Attorney Yoon was educated in Singapore, China, and Korea. To schedule a call with a lawyer in Korea, please click: Schedule a Call with an Attorney

IPG Legal, an international law firm based in Korea, has extensive experience in guardianship, Korean family law, Korean estate law, and dispute resolution.