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I am curious about the extinctive prescription of loaned money.

A few years ago, I lent money to an acquaintance who said he was short of business funds, but I still have not been repaid. Over that time I tried to contact him several times, but he kept putting it off, so I just left it, and recently I heard from people around me that even loaned money can disappear by prescription after a certain period passes. Exactly how much time must pass before I can no longer claim the loaned money? I am also curious whether, for a claim that is already old, the extinctive prescription of the loaned money has been completed, and whether the prescription revives if I contact him in the meantime or receive part of the money.

extinctive prescription of loaned money

Answer to Related Inquiry

Author: 정찬우

Loaned money is subject to the system of 'extinctive prescription,' under which a right is legally extinguished if it is not exercised for a certain period.

Under the 「Civil Act」, the general period of extinctive prescription for a civil claim is ten years, and if during this period there has been no exercise of the right, such as a demand for repayment or a lawsuit, the extinctive prescription of the loaned money is completed and the right to claim is extinguished.

However, in the following cases the extinctive prescription may be interrupted or newly reckoned.

First, where the debtor has repaid even a part, an intention to perform the obligation is recognized, and the prescription may start anew.

In addition, where the debtor, through a statement such as "I will repay soon" by text message or the like, acknowledges the existence of the debt, this constitutes a ground for interrupting the prescription.

Also, where a legal procedure such as filing a lawsuit, applying for a payment order, or attaching property is carried out, the extinctive prescription of the loaned money is interrupted and is reckoned again after the procedure ends.

In other words, if there was a ground for interrupting the prescription, a claim for the loaned money is possible even after the ten-year extinctive prescription for loaned money has passed.

Accordingly, if it is unclear whether the prescription has been completed, or if there is a possibility that the other party will assert completion of the prescription, it is advisable to exercise your right promptly, for example by applying for a payment order or sending certified mail.