SOUTH KOREA Law and Practice Contributed by: Jin Yeong Chung, Inhak Lee and Seung Hyeon Lee, Kim & Chang
to take necessary measures to rectify such defect, which resulted in death or serious bodily injuries. • Since 2024, compensation of damages up to five times the amount of actual damages/losses has been allowed under the Patent Act (wilful infringe- ment of patent or exclusive rights) and the Unfair Competition Prevention Act (wilful misappropria- tion of trade secret). Since 2019, compensation of damages up to three times the amount of actual damages/losses has been allowed under the Monopoly Regulation and Fair Trade Law (price- rigging or retaliatory measures for reporting of unfair trade practice). • The Credit Information Act and the Motor Vehicle Management Act were amended in 2020 and 2021, respectively, and under these amended statutes, compensation of damages up to five times the amount of actual damages/losses may be recov- ered. Under the amended Credit Information Act, such damages may be recovered in cases where credit information companies and other entities who are entrusted with individuals’ credit infor- mation, lose, disclose or otherwise destroy such information due to gross negligence or wilful mis- conduct. Under the amended Motor Vehicle Man- agement Act, such damages may be recovered in cases where manufacturers or importers conceal a defect or otherwise belittle the severity of the defect, or fail to take prompt corrective action, after they become aware of the defect. • Furthermore, under the Serious Accident Preven- tion Act, enforced starting in 2022, a person who violates the statute and causes a serious accident that results in a loss of life or bodily injury may be liable for damages up to five times the amount of actual damages. • Starting in 2025, the amount of exemplary damag- es that could be awarded for infringement of trade marks or an exclusive licence to use the trade mark under the Trademark Act was increased from three times the actual damages to five times the actual damages. Similarly, the amount of exemplary dam- ages that could be awarded for infringement of design right or an exclusive licence to use design under the Design Protection Act was increased from three times the actual damages to five times the actual damages.
There are no particular rules limiting the maximum amount of damages. However, the court may, at its discretion, deduct the amount of liquidated damages sought by a party if it considers that the amount levied is unduly excessive. 9.3 Pre-Judgment and Post-Judgment Interest Pre- and post-judgment interest is usually sought by the parties and recognised by the court. Typically, a plaintiff will ask for pre-judgment interest as applicable under contract or law. Unless agreed otherwise by the parties, the statutory interest rate applicable for com- mercial claims is 6% per annum and for general civil claims, 5% per annum. There is also a post-judgment interest applicable under the relevant law. Under this act, interest accrues on the amount of the money judgment from the time the unsuccessful defendant was served with the com- plaint, or if the court finds that the defendant had justi- fiable grounds to dispute the complaint, from the time of the court’s judgment. The current applicable post- judgment interest rate under this act is 12% per year. 9.4 Enforcement Mechanisms of a Domestic Judgment Once a judgment becomes final and conclusive, a party can file an application to the courts for compul- sory auction or compulsory administration, or seizure of the obligor’s property, depending on the nature of the creditor’s right that has been recognised by the judgment. A party can also apply to the court to set a specific date by which the obligor needs to perform its obligation and order compensation in case such performance is delayed. A judgment is, in principle, enforceable when it is not subject to further appeal. However, in practice, a judgment is most often enforceable even before it becomes final and non-appealable because the first instance court often issues an order allowing provi- sional enforcement.
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