South Korea is Asia's fourth-largest economy with a sophisticated commercial legal system, but cultural factors significantly influence collection strategy.
Korea's Civil Procedure Act governs commercial claims. The Seoul Central District Court handles most major commercial disputes. Korea also has a specialised Patent Court and Bankruptcy Court.
Korea's fast-track procedure for documented claims. The creditor applies to the court with evidence of the debt. If the debtor doesn't object within 14 days, the order becomes enforceable. Cost-effective for undisputed claims.
Face (chemyon) plays a significant role in Korean business culture. Collection approaches that allow the debtor to maintain dignity while resolving the obligation produce better results than aggressive confrontation. Relationship-based negotiation through intermediaries is often more effective than direct legal pressure.
Property seizure, bank account garnishment, and salary garnishment through the court execution office. Korea's real-name financial transaction system makes bank account identification relatively straightforward.
5 years for commercial claims. 10 years for civil claims under the Civil Code.
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