SOUTH KOREA Law and Practice Contributed by: Jin Yeong Chung, Inhak Lee and Seung Hyeon Lee, Kim & Chang
importers conceal a defect or otherwise belit- tle the severity of the defect, or fail to take prompt corrective action, after they become aware of the defect. • Furthermore, under the Serious Accident Prevention 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. There are no particular rules limiting the maxi- mum amount of damages. However, the court may, at its discretion, deduct the amount of liqui- dated 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. Typi- cally, a plaintiff will ask for pre-judgment inter- est as applicable under contract or law. Unless agreed otherwise by the parties, the statutory interest rate applicable for commercial 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 complaint, or if the court finds that the defendant had justifiable grounds to dis- pute 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
compulsory auction or compulsory administra- tion, or seizure of the obligor’s property, depend- ing 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 perfor- mance 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 provisional enforcement. 9.5 Enforcement of a Judgment From a Foreign Country In order to enforce a foreign judgment in Korea, a party must obtain an enforcement judgment from the Korean court. Korean courts recognise and enforce the foreign judgment if the following conditions are met: • the foreign judgment (including order, deci- sion, etc) is final and conclusive; • the foreign court’s jurisdiction is recognised under Korean law or treaties; • the defendant (ie, the Korean party) was properly served with the complaint (or equiva- lent document), summons or any orders in a lawful manner (other than by public notice or similar methods) in advance so as to have sufficient time to prepare their defence, or the defendant participated in the foreign pro- ceedings without having been served; • the foreign judgment does not violate the public policy of Korea; and • a Korean court judgment would be similarly recognised and enforced by the courts in the foreign country in question.
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