I received a call from a friend asking about information concerning collecting on a personal debt. He loaned money to a “friend” and the friend never made a payment on the loan. I advised one of the ways to encourage payment is via garnishing wages. Korea has an effective and efficient method of garnishing wages. 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
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Debtor’s Liability to New Owner after Transfer of Business and Trade Name
A developer recently contacted IPG Legal concerning a dispute with a supplier of building materials. The developer purchased building materials from a supplier with payment to be forwarded 30-days after receipt of the materials. This is a common practice when a supplier has a long-term relationship with a developer, provides a consistent flow of supplies to a developer, and the developer is solvent. Here comes the problem. The supplier was sold and the business and trade name was transferred to a new owner. The problem arose when
Continue readingHow Companies and Individuals Can Collect an Unpaid Debt in South Korea
Many foreigners, both companies and individuals, seek our advice on how they can effectively collect debts from debtors with assets, businesses, and/or residences in Korea. The following article details the major means of collecting on a debt in Korea. For an article on enforcing a foreign judgment in a Korean court, see: How to Enforce a Foreign Judgment in a Korean Court? For an article on the securitization of movable properties in Korea, please see: Security on Movable Property and Receivables in Korea Collecting a Debt in
Continue readingProvisional Attachments of Assets in Pending Litigation in Korea Courts
A party attempting to collect on a debt or potential liability based on breach of contract or torts in Korea may obtain a Provisional Attachment of an Asset. Another useful tool to expedite proceeding in a Korean civil matter is to Obtain a Payment Order from a Korean Court. A provisional attachment is considered provisional, since the attachment is executed prior to the final judgement. The, facial, purpose of a provisional attachment is to secure assets necessary for enforcement in cases where a defendant may conceal or dispose of
Continue readingKorean Commercial Liens versus Korean Civil Liens
Korea, in short, has two major types of liens – Commercial Liens and a Civil Liens. For example, in a dispute between a contractor and a landowner or developer, a contractor make execute a Commercial Lien or Civil Lien. A Commercial Lien is governed by the Korean Commercial Code while a Civil Lien is governed by the Korean Civil Code. I shall for ease, utilize the contractor and landowner (developer) for example purposes only. For explanation of Korea’s law on attachment please see: Preliminary Attachments in Korea
Continue readingArrest/Attachment of Ships at Korean Ports: Maritime Liens in Korea
The arrest of vessels/ships in Korea is a common tool to satisfy judgments against debtors. Korean courts allow the ex-parte arrest of ships. The court in Korea, normally, does not request from the Korean counsel of the creditor/claimant evidence of how long the ship will remain in Korean waters, as is, sometimes, the case in other neighboring jurisdictions. We find Korea to be a much easier destination for arresting vehicles than many other Asian nations, because of the efficiency focus of the Korean court system and the
Continue readingKorean Act on Special Cases Concerning the Establishment and Operation of Internet Banks
In September 2018 the Korean National Assembly passed the Korean Act on Special Cases Concerning the Establishment and Operation of Internet Banks (hereinafter as “Act on Internet-Only Banks”), which is in force since January 2019. The major facial intent of the Act on Internet-Only Banks is to “…encourage innovative enterprises to enter the financial market while laying the legal framework for the convergence of information and communications technologies (ICT) with financial services, and the creation of new economic growth drivers.” One of the main impetus for the
Continue readingPiercing the Corporate Veil in Korea: Suing Shareholders of a Corporation
It is possible, in some situations, for shareholders to be sued for the acts of a corporation. The concept is called “piercing the corporate veil.” The Supreme Court of Korea has noted that the corporate veil may be pierced and a shareholder may be sued: “Where a company maintains the external appearance of a juristic person while it merely takes the form of a juristic person and, in substance, it is equivalent to other person’s private enterprise behind the corporate veil or used without justifiable reason in
Continue reading7 Musts to Succeed in Business in Korea
We have the unique pleasure to have a bird’s-eye view of numerous clients’ businesses in Korea. At this stage of our experience in Korea we are, typically, able to determine which companies will, likely, succeed and which companies will, likely, fail. We are far from perfect, but companies that succeed in Korea, normally, have the following seven things in common: 1. Comprehensive Understanding of the Korean Market by a Neutral Local Consultant This understanding, normally, comes from one of the few business consultants, in Korea, that are
Continue readingWills, Trusts, Pre-Nuptial Agreements, Living Wills, and Power of Attorneys in Korea
We receive numerous requests for the notarization of wills, living wills, general and specific power of attorneys, prenuptial agreements, and other like agreements and documents in Korea. These documents are, often, just pulled from the internet. Pulling these documents from the internet is not adequate – in most cases. Please save your family trouble and get these documents drafted by someone with substantial experience with handling international matters for expats residing in Korea or Korean nationals with family abroad. We, sometimes, organize the notarization of these agreements
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