Seoul Law Firm Case | Full Recovery of a Loan Through the Seoul Law Firm's Assistance

The clients were coworkers of the defendant.

The defendant intended to leave the company he was working at and start a business.

Because starting a business required start-up funds, he wanted to borrow them from the clients.

The clients then prepared a loan certificate together with the defendant and lent him the money.

However, the defendant repaid only part of the loan and did not pay the rest after that.

In the end, the clients asked the Seoul law firm for assistance in order to recover the loan.

The Seoul law firm explained the lawsuit for the return of a loan.

A loan

refers to money that has been lent, and if you have not received such a loan back, you may proceed with a lawsuit for the return of a loan through a civil action.

※ Civil Act Article 598 (Definition of Loan for Consumption)

A loan for consumption becomes effective when one party agrees to transfer to the other party the ownership of money or other substitutes, and the other party agrees to return goods of the same kind, quality, and quantity.

※ Civil Act Article 390 (Default and Damages)

If an obligor fails to effect performance in accordance with the substance of the obligation, the obligee may claim damages. However, this shall not apply if the performance has become impossible without any intention or negligence on the part of the obligor.

※ Civil Act Article 393 (Scope of Damages)

① Damages for default shall be limited to ordinary damages.
② Damages arising from special circumstances shall be subject to compensation only where the obligor knew or could have known of such circumstances.

*If you would like a more thorough review, we recommend seeking a 🔗legal consultation with an attorney.

The Seoul law firm will explain the 🔗lawsuit for the return of a loan in detail.

There are requirements that must be met in order to proceed with a lawsuit for the return of a loan.

• Requirements for a Lawsuit for the Return of a Loan

1. The fact of a monetary loan-for-consumption contract between the creditor and the debtor

2. The fact that the money was to be repaid within the term

3. In the case of a claim for interest, the fact of an interest agreement

In other words, it is important to confirm whether there is evidence of the claim relationship between the creditor and the debtor.

A loan certificate, if available, will serve as good supporting evidence, but if there is none, other materials proving the monetary transaction are needed.

• Procedure for a Claim for the Return of a Loan

1. Certified mail: If the debtor does not repay the loan, a certified-mail item is sent urging repayment of the loan.

2. Application for provisional attachment: The creditor may apply for a provisional attachment of the debtor's property before the debtor disposes of it.

3. Application for a payment order: If the debtor acknowledges the debt, an application for a payment order is filed.

4. Proceeding with a civil action: If the debtor denies the debt, a lawsuit for the return of a loan must be filed.

5. Compulsory execution: Once a payment-order decision or a judgment in a civil action has become final, compulsory execution may be carried out against the debtor's property.

• Extinctive Prescription for a Lawsuit for the Return of a Loan

The extinctive prescription for a lawsuit for the return of a loan is ten years.

It is necessary to consider whether ten years have passed since the transaction.

The clients and the defendant prepared a loan certificate proving the fact of the monetary transaction.

The Seoul law firm presented the loan certificate as evidence and argued that the defendant had to return the loan.

The defendant did not return the loan even though the repayment term had passed.

The Seoul law firm therefore argued that the defendant had not kept to the loan repayment term.

The Seoul law firm noted that a debtor has an obligation to return a loan to the creditor.

Accordingly, it emphasized that the defendant had an obligation to return the loan to the client.

The clients were able to recover the loan from the defendant.

The Seoul attorney collaborates with attorneys nationwide to provide client-tailored solutions through in-person meetings and real-time video conferences.

If you wish to proceed with a lawsuit for the return of a loan, we recommend asking a 🔗Seoul attorney for assistance.