ENGLISH

Loan Agreement
Purpose of Procedure for Payment Demand
Purpose and Advantages of the Payment Demand Procedure
- The "payment demand procedure" is one of the primary civil dispute resolution processes involving the court, alongside litigation and mediation procedures. It has the following advantages (refer to the Korea Court’s Electronic Civil Petition Center - Payment Demand Procedure):
· The court issues a payment order based solely on a document review.
· It provides a swift solution to disputes.
· The various costs paid by the creditor to the court are economical.
· Once the payment order is confirmed, it has the same effect as a final judgment.
※ For detailed information on the payment demand procedure, you can refer to the <Korea Court’s Electronic Civil Petition Center - Payment Demand Procedure>.
Advantages of Procedure for Payment Demand
- It is more advantageous for the creditor to take procedure for payment demand rather than to take civil litigation procedure because in the procedure for payment demand, (i) the parties are not required to appear before the court; (ii) the parties do not need to hold any pleadings; and (iii) the fee for the revenue stamp is inexpensive. Accordingly, the procedure for payment demand is simpler, more expeditious and more economical than the civil litigation procedure.