Recovering Unpaid Money in Korea as a Foreign Creditor
If a Korean company or individual owes you an unpaid invoice, service fee, loan or investment, Korean law offers a ladder of steps, from a formal demand letter to a lawsuit and enforcement. The right first step depends on how clear the debt is and where the debtor can be reached.
Overseas creditors often lose time by sending informal reminders, or by assuming a foreign letter will be enough. In Korea the practical route runs through Korean-language documents and Korean courts, and the sequence matters.
Attorney Doyun Lee, a KBA-certified attorney, consults with foreign clients directly in English and handles matters remotely nationwide. The fees below are the published reference fees; no other prices are implied.
Step 1: Demand letter by certified content mail
A demand letter sent by certified content mail (내용증명, naeyong jeungmyeong) proves what you sent and when. It has no compulsory force by itself and does not make the debtor pay. Under the Korean Civil Act, a demand only provisionally interrupts the limitation period, so court action must generally follow within six months to keep that effect.
The published fee for drafting one demand letter in Korean and sending it by certified content mail is KRW 1,650,000.
Step 2: Payment order
A payment order (지급명령, jigeup myeongryeong) is a documents-only court procedure with no hearing. It suits debts that are undisputed and backed by clear evidence. It requires the debtor to be actually served in Korea: it cannot proceed by service by publication, and the court may instead move it to ordinary litigation.
If the debtor files an objection within two weeks of service, the case converts into ordinary litigation. That lawsuit is a separate engagement. The published fee for a payment order application is KRW 2,200,000~3,300,000.
Step 3: Civil lawsuit and enforcement
Where the debt is disputed or the payment order is contested, the route is a civil lawsuit. The published fee for a civil first instance is KRW 5,500,000~8,800,000. A judgment, or a payment order that has become final, is then enforced against assets the debtor holds in Korea, which is why finding those assets early is useful.
What to send for a first review
The most useful documents are the contract, invoices, remittance records, messages in which the debtor acknowledges the debt, and the debtor’s Korean address or business registration number. A debtor with no usable Korean address changes the options available, so say so at the start.
Governing law, jurisdiction and time limits
Check what the contract says about governing law and where disputes are to be heard before you choose a route. Also check the limitation period early. An old claim can already be close to expiry, and a demand letter alone does not stop the clock for long. The legal fees page sets out the full published schedule.
Real results in similar cases
Results reflect individual cases and do not guarantee the outcome of any similar matter.
Related pages
Frequently Asked Questions
Is a demand letter enough to get paid?
Usually not on its own. A certified content mail letter proves the demand and the date, but it has no compulsory force. It is often the first step before a payment order or a lawsuit.
How long do I have to sue after sending a demand letter?
Under the Korean Civil Act, a demand only provisionally interrupts the limitation period, so court action must generally follow within six months for the effect to hold. Confirm the exact position for your claim early.
When is a payment order the right choice?
When the debt is undisputed and well documented, and the debtor can be served in Korea. If the debtor objects within two weeks of service, it becomes ordinary litigation, which is a separate engagement.
What if the debtor has no address in Korea that I can use?
A payment order cannot proceed by service by publication, and the court may move it to ordinary litigation. This changes the options, so tell us at the first review.
What does it cost?
The published fees are KRW 1,650,000 for a demand letter, KRW 2,200,000~3,300,000 for a payment order application and KRW 5,500,000~8,800,000 for a civil first instance. Court fees, postage and travel may be charged separately.
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