FAQ

Most Frequently Asked Questions and Answers

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Q: Years have passed since the last partial payment of debtor, can I get my credit recovered ? 


A: Pursuant to Korean Civil Act and Commercial Act, each claims are subject to different extinctive prescription years. For example, claim for hotel/restaurants (1year), claims of artisans and manufactures for their works (3years), claim of ordinary transaction between merchants (5years), claim established by a judgment (10years), etc. For more details, please leave us an inquiry. 


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Q: I have lost contact with debtor. Debtor is not answering the phone and it seems that its business has been discontinued. Can I get my credit recovered in this case ? 


A: You still have right to claim against debtor in case of business discontinuity, company dissolution, and when some of the requirements are met, establishment of new corporation. For more details, please leave us an inquiry.    



Q: I am considering filing a civil lawsuit against debtor, can I get my attorney fees and court fees recovered ? 


A: Yes, however, usually not all of it. Pursuant to Korean Civil Procedures Act, losing party shall bear winning party's attorney fees (at statutory rate) and court fees. For more details, please leave us an inquiry. 


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Q: I have suffered severe loss of revenue by the debtor. Can I get my lost revenue recovered from debtor ? 


A: With relevant evidence, you can consider filing a damage case against debtor claiming lost revenue from the debtor. The answer is, “Yes, in case the court accepts your Lost Revenue as ordinary damage, or when you have secured the evidence that the debtor already knew or could have known your Loss of Revenue. For more details, please leave us an inquiry. 


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Q: I want my credit get recovered but a bit worried that ordinary civil lawsuit would take too much time to obtain final award.  


A: You can consider (1) demand letter or (2) order of payment to accelerate overall collection procedures. Please be noted, however, that above alternatives can also delay the proceedings when you fail to secure debtor's address or when debtor intentionally refuses to receive the letter from post office / court. For more details, please leave us an inquiry. 


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Q: I have been asking debtor for repayment continuously but debtor is not willing to pay. There seems to be enough money in the debtor's bank accounts. Can I bind its bank accounts before ordinary civil lawsuit ? 


A: Yes. You can proceed preliminary injunction on debtor's bank accounts. Korean Court allows preliminary injunction on several bank accounts. When the court renders a decision on preliminary injunction, you should deposit certain proportion of claiming amount to court and you will find its bank accounts are bound. For more details, please leave us an inquiry. 


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Q: How long does it take to obtain a final award from court in ordinary civil lawsuit ?


A: When you proceed a civil lawsuit, the first pleading date will be scheduled from 2~4 months from date of receipt (depends on delivery status and defendant's answer). The court will schedule several pleading dates for both parties to submit written briefs and evidence. When necessary, the court will proceed a witness examination or court appraisal. Regarding above, it usually takes 2~3 months for a undisputed / simple cases, 4~9 months for disputed / complicated cases. When the last pleading date is over, the court will set a final judgment date. The award will be final and bound when both parties do not choose to appeal. It takes about 1~2 months. For more details, please leave us an inquiry. 


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Q: I have won the lawsuit against debtor and the judgment is now final and bound. But the debtor refuses to pay after several requests. What should I do for recovery ?


A: You can proceed compulsory execution. You can seize the bank accounts, liquidate real estates, or other procedures on debtor's asset. In some cases, you can also consider criminal charge against debtor.  For more details, please leave us an inquiry. 


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Q: I found my debtor has applied for rehabilitation / bankruptcy in court. How can I recover my unpaid credit safely ?


A: In case debtor is under rehabilitation / bankruptcy procedures but you did not receive any notice from court. You should report your credit to court before deadline. When you report your credit to court before deadline, you will receive partial payment pursuant to debtor's repayment schedule acknowledged by court. For more details, please leave us an inquiry. 


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Q: I have found my debtor has closed its company and established a new one without any prior notice. All the transactions was made with closed company. Can I get my credit recovered ?


A: When some requirements are met, "Piercing the Corporate Veil" is applicable to your case. The court acknowledges the liability of individual behind the company when the closed company is run as a private company. For more details, please leave us an inquiry. 


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Q: What are the costs I need to pay to proceed debt collection in Korea?


A: You have to pay the fees; Attorney fees (partial recovery available when you win the case), Court Fees (recovery available when you win the case)

Sometimes, you have to deposit certain amount of money calculated at the statutory rate during the litigation.   


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Q: I want to recover my debt but do not want to ruin relationship with my business partner.


A: We provide several remedies including non-litigation and litigation remedies. When creditor and debtor are in a close relationship as friend, colleague, etc. We recommend Civil Lawsuit as most appropriate legal remedy.    


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