ENTRUST YOUR OUTSTANDING RECEIVABLES IN KOREA TO INVENIUM
It is almost always advisable to manage collection of a receivable in Korea out of court using specific expedients.
We recall that the legal system in Korea is divided into three levels: the Supreme Court (the highest ruling level), the High Courts and the Local Courts (present in 12 cities).
Commercial disputes may be heard by a civil court. In principle, precisely in order to avoid recourse to the courts, arbitration is probably the best way to manage commercial disputes.
Foreign companies, nevertheless, often have the feeling that this is not a practical means to settle disputes: the proceedings are exclusively in Korean and with no translation, they are expensive both in terms of time and legal costs and should be used only as a last resort.
In Asia, lawyers can exert strong pressure on debtors to pay, which is why in the case of a dispute, the first thing to do is to have a good local Korean lawyer who will immediately send a warning and then a letter of request.
In most cases, if the debtor is solvent, the matter will be settled via letters. The letter of request must be in Korean. Too often lack of attention and understanding of the facts of the matter nullify the result.
If unsuccessful, normally a seizure order must be obtained before the trial. Both property and non-property assets can be seized. Korean courts require significant deposits for the seizure of assets, often exceeding 1/3 of the value.