You have unpaid receivables from a Korean company or personnel. The Korean counterpart doesn’t reply or refuses/delays the payment arguing some unacceptable reasons. The Korean counterpart might be acting in a hope that the long distance between the two works in their favor. You may also feel helpless or sometimes frustrated confronted by language barriers and different laws.
That is the time to consider hiring a local lawyer. The Korean business and litigation lawyer can guide you through the whole process of debt collections in South Korea.
Let’s assume a creditor has a monetary claim against a debtor in Korea but the debtor refuses to pay it. The creditor would proceed to file a lawsuit to get a judgment to collect his claim. Unfortunately, however, the chances are that knowing the complaint was filed, the debtor would try to conceal or transfer his assets to evade from the liability under judgment. This shows why provisional attachment is highly required to secure the judgment effectively.
Read More: Korean Lawyer Explains Debt Collections In South Korea – Overview
Provisional attachment is a judicial measure available to anyone who has a monetary claim to lock down certain assets. It, depending on the type of court order, prevents the debtor from selling assets or enables the creditor to secure his interest in the debtor’s asset regardless of the sale by the debtor, until the court issues a judgment on the merit.
The creditor can, and usually does, seek a provisional remedy before she files a complaint on the merit. So, this is a very powerful weapon for the creditor. For example, as many Korean creditors do, if the creditor succeeds in putting a provisional attachment on the debtor’s bank account, the debtor would not be able to use the money and could face several penalties regarding its banking/financing transactions with the bank. This could heavily deteriorate the ability for a small company to conduct business, which makes the debtor (more…)