Purpose of Civil Litigation
Purpose of Civil Litigation
- Purpose of "civil litigation" is to protect any person's right and to preserve law and order of the country.
- A creditor shall be entitled to claim against the debtor for his or her repayment when it is due, and if the debtor fails to make such repayment, the creditor may commence legal proceedings against the debtor.
- The type of litigation in such a circumstance shall be a Monetary Claim for Payment.
※If the claim amount is KRW 30 million or less, you should preferably use the small claim procedure
Jurisdiction of Civil Litigation
- Civil litigation proceedings shall be issued before the court in the location of the defendant's registered address. However, if such address is unknown to the claimant, the location may be the defendant's place of abode secondarily, and if such place of abode is also unknown to the claimant, the location may be the defendant's address that was last known to the claimant. (Article 3 of the Civil Procedure Act)
- Nevertheless, if the civil litigation proceedings are concerned with a property right against the defendant (e.g. a claim for repayment under a Consumer Cash Loan Agreement), the claimant may issue the claim before the court located in the place of the subject matter of the claim or those of the security, or any seizable property of the defendant. (Article 11 of the Civil Procedure Act)
Issuing Civil Litigation Claim
Submitting Statement of Claim
- Civil litigation claim shall be issued by submitting a statement of claim. (Article 248 of the Civil Procedure Act)
Preparing Statement of Claim
- On a statement of claim, personal details of the parties, purpose of claim, and grounds for claim shall be stated.
· In the section of "purpose of claim (which is equivalent to draft judgment)," the claimant should state why he or she issues a claim. Templates for such statement are as follows:
[Template for a Monetary Claim for Payment]
1. The Defendant shall pay KRWㅇㅇㅇand interest accrued thereon at the rate of 20% per annum as from the date when the Defendant received a copy of this Statement of Claim up to the date when the defendant makes such payment.
2. The litigation cost shall be borne by the Defendant.
3. Paragraph number 1 above may be enforced provisionally.
The Claimant hereby requests the court to hold as above.
· "Grounds for claim" means any reason why such legal relationship between the claimant and defendant has been established. A template for grounds for claim is as follows:
[Template for a Monetary Claim for Payment]
1. On March 1, 2008, the Defendant lent KRWㅇㅇㅇto the Claimant for a period of one year at an interest rate of 10% per annum.
Payment of Revenue Stamp
- In a civil litigation proceeding, a revenue stamp with a face value based on the claim amount shall be attached to a Statement of Claim. (Article 1 of the Act on the Stamps Attached for Civil Litigation, etc.)
- The face value of revenue stamp to be attached to the Statement of Claim shall be as follows. (Article 2 of the Act on the Stamps Attached for Civil Litigation, etc.):
|
Claim Amount in Civil Proceedings
|
Face value of revenue stamp to be attached to the Statement of Claim
|
|
Less than KRW 10 million
|
0.50% of the claim amount
|
|
KRW 10 million or more, but less than KRW 100 million
|
0.45% of the claim amount plus KRW 5,000
|
|
KRW 100 million or more, but less than KRW a billion
|
0.40% of the claim amount plus KRW 55,000
|
|
KRW 1 billion or more
|
0.35% of the claim amount plus KRW 555,000
|
- Notwithstanding the above, the claimant may make payment for court fees to any designated bank or to any other financial institution by cash, credit or debit card instead of attaching a revenue stamp. (Article 1 of the Act on the Stamps Attached for Civil Litigation, etc.; Articles 27 and 28(2) of the Regulations on the Stamps Attached for Civil Litigation, etc.)
Trial of Small Claims
Definition of Trial of Small Claims
- A "trial of small claims" means a trial dealing with a small claim which is for a fixed amount of money, its substitute, or other negotiable security in the sum of KRW 30 million or less.
- If the claim amount is KRW 30 million or less and the claim is based on a Cash Loan Agreement, it is mandatory to follow the small claims procedure. (Article 2(1) of the Trial of Small Claims Act; Article 1(2) of the Regulations of the Trial of Small Claims)
- As the small claims procedure is a special procedure followed at the trial court, you shall follow normal civil litigation procedure if you choose to appeal or re-appeal against the judgment of the court below.
※For further detailed information with regard to a trial for small claims, please visit the "
Small Claim Proceedings" section in this website.