Civil proceedings to get your money back start with evidence and managing deadlines

Loans, Contract Claims & Civil Suits Matters We Handle

1. Claims for Loans and Agreed Payments — Even without an IOU, we prove the claim with transfer records and conversationsFor money you lent, the loan and the promise to repay are proved with bank transfer records, messages, recordings, and similar evidence. Even if the money was labeled as an investment, if return of the principal and a fixed return were guaranteed, it may be treated as a loan for consumption and the Interest Limitation Act may apply.Distinguishing a loan, investment, or gift and determining the nature of the agreement · Calculating interest and late-payment damages · Checking whether the maximum rate under the Interest Limitation Act was exceeded · Claims against guarantors and joint debtors
2. Construction and Service Fees — Completion of the work and agreements on additional work are the issuesIn construction fee disputes, the main issues are whether the work was completed and whether a price was agreed for additional work not in the contract. Claims relating to construction work are subject to a short 3-year limitation period (Article 163(iii) of the Civil Act).Organizing contracts, estimates, and work logs · Requesting expert appraisal of work completed and defects · Proving agreement on additional work · Reviewing liens and provisional attachment
3. Lease Deposits and Eviction — Disputes over return of deposits and surrender of premisesIf the lease has ended but the deposit has not been returned, you file a claim for return of the deposit; if the tenant will not leave, you file a claim for surrender of the building (eviction). For commercial leases, damages for interfering with the tenant's recovery of key money (gwonrigeum, a premium paid for a business location) can also be an issue.Applying for an order for registration of the lease · Lawsuit for return of the deposit and compulsory enforcement · Injunction prohibiting transfer of possession, followed by an eviction lawsuit · Reviewing protection of the opportunity to recover key money
4. Payment Orders and Small Claims — Simplified procedures for money claims with little disputeIf the other party does not seriously dispute the debt, a payment order lets you obtain an enforceable title quickly. Money claims of KRW 30 million or less are handled as small claims cases, and the court can issue a recommendation for performance.Preparing the application for a payment order · Responding when an objection turns the case into a lawsuit · Recommendations for performance in small claims cases · Moving on to compulsory enforcement once final
5. Defending a Civil Lawsuit — Defense for those who have received a complaintIf you receive a complaint, you must file an answer within 30 days from the date of service; if you do not, the court may treat the plaintiff's claims as admitted and render judgment without a hearing. An objection to a payment order or recommendation for performance must be filed within 2 weeks from service.Managing deadlines for answers and objections · Defenses of limitation period and payment · Reviewing counterclaims and set-off · Negotiating mediation and settlement

1. Types of Money Claims and What Must Be Proved

The most common civil cases are claims to get money back. The limitation period, interest rate, and what must be proved differ depending on the nature of the claim.

• Loans: You must prove that you handed over the money and that it was lent (an agreement to repay). The other party often argues it was a gift or an investment, so messages, recordings, and any history of repayment are important.
• Agreed payments and investments: An investment with no guarantee of returning the principal is not a loan for consumption, but if full return of the principal plus a fixed return unrelated to the success of the business was definitively guaranteed, it may be treated as a loan of money and the Interest Limitation Act may apply.
• Construction and service fees: The issues are completion of the work, the value of work completed, and agreements on additional work, and if there are defects, damages and set-off become issues.
• Deposits and unjust enrichment: You prove that the lease ended and the premises were returned, or that the other party gained a benefit without legal cause.

2. Limitation Periods and Interest Rates at a Glance

The limitation period is interrupted by a judicial claim, attachment, provisional attachment, or provisional injunction, or by the debtor's acknowledgment (Article 168). A demand such as a content-certified letter keeps its interrupting effect only if a lawsuit, provisional attachment, or similar step follows within 6 months (Article 174).

3. Choosing a Procedure: Payment Order, Small Claims, or Ordinary Lawsuit

1. Payment order (demand procedure): For claims for payment of money or a fixed quantity of things, it is issued on review of documents alone. Service in Korea must be possible by means other than service by public notice (Article 462 of the Civil Procedure Act). If the debtor objects within 2 weeks, a lawsuit is deemed filed at the time the payment order was applied for, and the case moves to litigation (Articles 470 and 472).
2. Small claims case: Applies to money claims of KRW 30 million or less, and the court can send a recommendation for performance together with a copy of the complaint. If the defendant does not object within 2 weeks, it has the same effect as a final judgment (Articles 5-3, 5-4, and 5-7 of the Trial of Small Claims Act). A spouse, lineal blood relative, or sibling can act as litigation representative without the court's permission (Article 8).
3. Ordinary civil lawsuit: Proceeds in the order of filing the complaint → answer → preparatory proceedings and hearings → judgment, and may also end midway through mediation or a recommendation for settlement.

4. Practical Issues and Responses

• No IOU: Bank transfer records only show that money moved, so we also organize conversations and repayment records that support the fact that it was a loan.
• Interest agreements: If no interest was agreed, the loan itself does not bear interest, but late-payment damages can be claimed after the due date. If the agreed rate exceeds the maximum rate under the Interest Limitation Act, the excess is void, and excess interest already paid is applied to the principal or can be claimed back (Article 2(3) and (4) of the Interest Limitation Act).
• Hiding assets: If the debtor transferred assets knowing it would harm creditors, you can seek revocation of the fraudulent act, and the action must be filed within 1 year from learning of the grounds for revocation and within 5 years from the act (Article 406 of the Civil Act).
• After judgment: A judgment is the starting point for recovery. It leads on to asset disclosure, asset searches, and compulsory enforcement.

Key Court Decisions

Supreme Court Decision 2023Da272289, decided November 14, 2024

Held that even if called an investment agreement, if the agreement itself definitively guaranteed full return of the principal together with payment of a fixed sum unrelated to conditions such as the success of the business, it is likely a loan of money to which the Interest Limitation Act applies.

Supreme Court Decision 2025Da220815, decided May 14, 2026

The Court itself rendered judgment calculating late-payment damages at the Civil Act rate of 5% per year until the date of the lower court or first-instance judgment, up to which it was reasonable for the defendant to dispute the claim, and at 12% per year under the Legal Proceedings Expedition Act from the following day (an application of Article 3(2) of that Act).

Frequently Asked Questions

Related Legal Guides

Civil Litigation Case Results

Written on the basis of Korean statutes in force (National Law Information Center, Ministry of Government Legislation) and court precedents as of October 20, 2026. Results may differ with amendments to the law or the facts of each case. This page is general information, not legal advice.

Written and reviewed by Attorney Dongwoo Shin — Ph.D. in Law; certified criminal law specialist and certified divorce law specialist registered with the Korean Bar Association. He handles each case personally from consultation to judgment. About the attorney →
Last updated October 20, 2026