Small claims trial
Significance of small claims trial
- A small claims trial refers to a system that files and conducts a litigation with greater convenience than other civil cases and which is applicable to civil cases where the disputed amount amounts to less than KRW 30 million (Article 2(1) of the 「Trial of Small Claims Act」 and Article 1-2 of the 「Small Claims Trial Rules」).
- To ensure a quick processing in a small claims trial, the court can hand down a sentence right after the first court date. However, when the court decides to recommend the performance of an obligation, the court date for pleading is not immediately set. Rather, a copy of the decision to recommend the performance is delivered to the defendant. If the defendant appeals, then the court date is scheduled and the trial proceeds (Articles 5(3), 5(4) and 7(2) of the 「Trial of Small Claims Act」).
- Spouses, next of kin, and siblings are qualified to be the representatives of the party involved without permission required from the court (Article 8 of the 「Trial of Small Claims Act」).
Qualifications for small claims trial
- Small claims trials are held for civil trials on the first instance in which the disputed amount is less than KRW 30 million and the payment must be done in cash, other substitutable payment of identical value, or securities (Article 2(1) of the 「Trial of Small Claims Act」 and Article 1-2 of the 「Small Claims Trial Rules」).
- In cases where the disputed amount exceeds KRW 30 million, payment in installments is not permitted (Article 5(2) of the 「Trial of Small Claims Act」 and Article 1-2 of the 「Small Claims Trial Rules」).
※ For instance, when the disputed amount is KRW 40 million, it is not possible to request small claims trials for KRW 30 million and KRW 10 million separately.
Small claims trial procedure
Filing a small claims trial
- A consumer or the spouse, next of kin, or sibling (referred to as “plaintiff”) who seeks a small claims trial can file a small claims trial in person or in writing (Article 8 of the 「Trial of Small Claims Act」 and Article 3 of the 「Small Claims Trial Rules」 ).
Recommendation made to the defendant to perform the obligation
- When a litigation is filed, the court is able to recommend the defendant (in this case the business operator) to attach a duplicate of the complaint or a copy of the litigation record and perform according to the purpose of the plaintiff’s claim (Article 5-3 of the 「Trial of Small Claims Act」).
- If the defendant requests an appeal within two weeks of receiving the recommendation to perform, a date of plea will be decided and the procedures for a small claims trial will be placed in motion (Article 5-4 of the 「Trial of Small Claims Act」).
※ The recommendation to perform the decision has the same effectiveness as the final judgment if ① the defendant does not appeal within the above period; ② the appeal request is rejected; or ③ the appeal request is withdrawn (Article 5-7(1) of the 「Trial of Small Claims Act」).
Pleas
- Pleas usually takes place during a single session and on the date of the plea, the judge questions the parties involved in the litigation. If the judge deems it to be suitable, the pleas can be submitted in writing (Articles 7 and 10 of the 「Trial of Small Claims Act」 and Article 6 of the 「Small Claims Trial Rules」 ).
Adjudgement
- When pleading is completed, the judgment will be rendered immediately (Article 11-2 of the 「Trial of Small Claims Act」).