Ask Korea Law

Published by Chung & Partners since 2008


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Does Korean Court issue a Provisional Attachment Order in Support of the Proceedings in the Merit in Foreign Courts?

Let’s assume you file an action for a money judgment in the US court or any jurisdiction other than South Korea, and the defendant has significant assets located in South Korea. In that case, you might need to consider putting a provisional attachment on those assets in order to prevent the defendant from hiding or liquidating the assets to render the judgement ineffectual. Then this situation entails the following question: can a plaintiff in a foreign proceeding apply for a provisional attachment to the Korean court, while pursuing the proceeding in the merit in foreign jurisdiction?

The answer is yes.  The Korean court grants and issues a provisional attachment order per the foreign creditor’s application in support of proceedings which have been or are to be commenced in a place outside of South Korea. It does not require the substantive proceedings are to be connected to South Korea. Further, it does not require the defendant to be the resident of South Korea. It just suffices only if the assets are located in South Korea. That said, for example, the US creditor pursuing an action in New York may apply to the court of South Korea for a freezing order on defendant’s bank account in Korean banks to restraint the defendant from dealing with, or disposing of, the funds.

In this regard, There was a case in Korean court where the provisional attachment order against the Korean stocks was issued by the Seoul Family Court as the security for a judgment soon to be obtained in the court of Virginia, USA. The defendant in the US proceeding, which was a divorce case where the plaintiff seek $6,700,000USD for her share of property division, filed an objection Continue reading


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Is Australian Court’s Money Judgment Enforceable in South Korea?

법원마크A while ago, we posted an article about the recognition and enforcement of foreign judgment in Korea. One of the hurdles in getting foreign judgment recognized in Korea is to find whether there exists a reciprocity in relation to the enforcement of foreign judgments between the two jurisdictions, i.e. Korea and foreign country where the judgment was issued. Korean court reviews this issue on case by case basis.  If the court finds that the foreign jurisdiction’s requirements for the recognition of Korean judgment are similar or not more difficult to be met than the requirements under the Korean law, the court declares the existence of reciprocity.  This does not require an actual precedence in the foreign court that a Korean court judgment was recognized.  It just means a reasonable possibility that the Korean judgment would be recognized in that foreign jurisdiction. The Korean courts have so far recognized the reciprocity with, among others, California(USA), New York(USA), Texas(USA), Washington(USA), China, Japan and Canada.  Then how about Australia?

Back in 1987, the Supreme Court of South Korea rejected the recognition of a judgment from the court of New South Wales, Australia on the ground that there was no reciprocity between the two jurisdictions.  At that time, Korean court found that the New South Wales law required the Australian court to review the merit of the foreign judgment in order to recognize it.  This was a serious conflict and deviation from the Korean legal stance that the courts should not consider whether the foreign judgment is substantially correct when granting the recognition of a foreign judgment. With this great discrepancy, the Korean court came to rule that the requirement for the recognition of foreign judgment under New South Wales law was much difficult to be met than the Korean law, and, therefore, the reciprocity was not established.

It should be, however, noted that this ruling was rendered before Australia enacted the Foreign Judgments Act 1991 whereby South Korea was identified as one of the countries with which Australia has a reciprocity.  Under this new act, Continue reading


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[Q&A: Immigration Law] Can I Appeal the Deportation Order Issued by the Korean Immigration Office?

Q) My friend was convicted of a crime and sentenced to 1-year probation.  It was an accident which happened while he was drunken.  After then, the immigration officer ordered him to leave South Korea within a month on the ground of the conviction.  He is having an E-2 visa and was married to a Korean national.  He has a very good reputation around him and planned to live in Korea permanently.  I think it is too harsh for him to leave Korea.  Does he have any chance to appeal?

A) At the outset, the deportation order or an exit order from the immigration office is subject to the review of the court.  It can be overturned by the court based on the theory of misuse of discretionary power.  The court has ruled that the decision of the immigration office to deport a foreigner should not only meet the requirements provided by the relevant statute, but also it should not do more harm to the foreigner’s individual life than benefits to the public, otherwise it constitutes an abuse of discretion and therefore shall be revoked by the court’s order.

For example, the court has ruled that the deportation order against a HIV positive personnel is an abuse of discretionary power considering  the person’s long-time living base established in Korea.  Also a deportation order against the person with one and half year jail time sentence with 3 year suspension for the violation of (then-existing) Anticommunist Act was struck down, as the court found it an abuse of discretionary power after finding his solid living base in Korea supported by other character evidences is a legitimate interest which should be preserved by allowing his legal residency in Korea.  Also there have been many successful appeal cases Continue reading


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Is Defaulting Korean Supplier Liable for the Foreign Distributor’s Damages and Loss of Profits Resulting from the Failure of 3rd Party Reseller Deal?

그림 2A distributor from the U.S. entered into a distributorship contract with Korean supplier (exporter) for certain goods.  Of course, the U.S. distributor was thinking to resell the goods in U.S. market for a markup. But the problem broke up after the contract was duly singed and executed.  With no reason, Korean supplier suddenly refused to sell the goods and rescinded the contract.  Due to this unexpected turmoil by the foreign supplier, the U.S. distributor could not properly perform the reselling deals with the local warehouse stores, which the distributor had thought very lucrative. There would be no doubt that the act of Korean distributor constitutes a breach of distributorship agreement. But, the U.S. distributor did not pay anything, yet.  The only loss they encountered was they lost a good deal with 3rd party by reason of the Korean supplier’s breach of contract.  Now, the U.S. distributor tries to recover damages and loss of profits from the supplier in Korea which they suffered from the failure of the reselling deal with the local warehouse stores.  In this case, can the U.S. distributor prevail in Korean court and under Korean law?

The key legal issue would be whether the Korean supplier knew of the fact that the distributor had completed their negotiation with 3rd party for the resale agreement.  According to the ruling from the Supreme Court of South Korea, if the supplier knew of the fact, the supplier is liable for the distributor’s loss relating to failure or non-performance of the resale agreement with 3rd party.  By contrast, Continue reading


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[Q&A: Family Law] Is My Canadian or U.S. Divorce Decree Including Alimony and Child Support Order Enforceable in Korea?

Q) I filed for divorce in Ontario, Canada.  My husband lived in Canada and he was duly served with the court’s documents.  I will have a final divorce ruling from Canadian court including child support and alimony order soon.  But the issue is he will probably leave Canada and head to South Korea after the ruling is issued.  Will the Korean Courts recognize the Canadian court order in order to enforce his performance of child support and alimony payment?

A) There is a case where Korean Supreme Court recognized and approved the Canadian court’s divorce/asset distribution/child support/alimony order.  That order was issued from Superior Court of Justice in Ontario.

As a matter of law, Korean court recognizes foreign court’s divorce ruling so far as (i) the foreign court has a jurisdiction over the case in perspective of Korean law, (ii) the defendant was duly served, (iii) the ruling of the foreign court does not violate the social order of South Korea and (iv) there exists a mutual guaranty for recognition of rulings between the two jurisdictions.  For the last element, the Korean Supreme Court held that South Korea and Ontario have a mutual guaranty.  What is more important here is that the Supreme Court recognized foreign court’s alimony order.  Under Korean law, there is no legal concept of alimony in divorce.  Therefore, some may argue that as the alimony is not the legal right established in Korea, recognizing foreign court’s alimony ruling in Korea would violate the social order of  South Korea.  But, Continue reading


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Apple’s Korean Office Paid Compensation to a South Korean User for iPhone Location Tracking – Does This Mean Korean Court Made an End to the Legal Turmoil?

It was reported that last month Apple’s South Korean office paid $945 of compensation to one of South Korean iPhone users for the breaching of privacy by the controversial iPhone user location tracking.  Here is the detail from Reuters.

By the way, some news media reported that this was a ruling from a Korean district court.  I, as a Korean lawyer, think that statement is half right and half wrong.  Basically it is true that the court issued a ruling which ordered the Apple Korea to pay $945 to the user.  But this was not a formal trial case, but a Request for a Payment Order case.  Payment order is a more convenient & simplified legal procedure for claimant to get a judgment from the court compared to a formal lawsuit.  Once a request filed, the Korean court does not question the debtor (in this case, the Apple Korea) and issue a Payment Order within 2 or 4 weeks (in certain courts, within a few days). This payment order, a sort of ruling, asks the opposing party to choose whether to admit the claim as written on the request or to make an objection.  If no objection has been raised from the opposing party within 2 weeks, then Continue reading


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When You Need a Translation of Legal Document into or from Korean

Under Korean civil procedural law, every foreign document should be submitted with its Korean translation in order to be duly admitted as an evidence. The need for legal translation is not confined to the realm of litigation. You may need a translation for a critical business contract, a financial statement, patent/trademark documents, birth/marriage certificate, or court’s judgment. With that said, it can be understood that when you face up with any legal issue involving Korean law or Korean party, the document translation into or from Korean is somewhat inevitable.

It is needless to say that absolute accuracy is called for, because mistranslation of a passage or even a word could lead to negative legal ramifications. That is why the legal translation should be performed by professionals equipped with judicial and legal knowledge and experience. We have seen people just go to ordinary translation service providers and end up with problematic translations. When the translator does not understand the legal implication and purpose of the document, her translation cannot deliver the true meaning of the document and could even deteriorate the value of the document. The competent legal translator should Continue reading