Practice Areas

Lawsuit to Confirm Non-Existence of Debt

2025.08.04

A lawsuit to confirm the non-existence of debt is a legal procedure for obtaining legal confirmation that a particular debt does not exist between the parties to a contract. It is an important suit for resolving disputes that arise in the course of contract performance.

1. Lawsuit to Confirm Non-Existence of Debt | Definition

Daeryun General Litigation and Arbitration Group article on lawsuits to confirm non-existence of debt

A lawsuit to confirm the non-existence of debt is a suit brought when a creditor asserts performance of a debt even though no debt relationship exists, or asserts that a debt has not yet been settled.

In other words, when a person repeatedly receives demands for a debt that does not actually exist or faces the risk of a legal dispute, the debtor files a claim to confirm the non-existence of debt in order to preemptively block the legal risk and clarify their rights.

This suit constitutes an ‘action for confirmation’ that seeks confirmation of a legal relationship, namely, ‘whether a debt exists.’

What Is an Action for Confirmation?

An action for confirmation refers to a suit that seeks a determination of the existence or non-existence of a right or legal relationship.

▶Affirmative action for confirmation:
A suit such as one stating, ‘It is confirmed that the 100-pyeong parcel of land located at a given lot number belongs to the plaintiff.’

▶Negative action for confirmation:
A suit such as one stating, ‘Confirmation is sought that no debt exists arising from the loan for consumption of KRW 5 million dated October 10, 1995, between the plaintiff and the defendant.’

▶Interlocutory action for confirmation:
A suit seeking confirmation of a preliminary matter during the course of litigation, such as where, after B broke A’s camera and A brought a claim for damages, a dispute arose during the suit over whose camera it was, and a determination on that point is sought.

Representative actions for confirmation include the suit to confirm the non-existence of debt, the suit to confirm a leasehold, and the suit to confirm the nullity of a dismissal.

2. Lawsuit to Confirm Non-Existence of Debt | Common Types

Let us review the common types in which a lawsuit to confirm the non-existence of debt is brought.

-Where there was in fact no transaction, but a false claim is asserted

-Where the debtor has repaid all of a loan, a price of goods, or the like, but the creditor asserts that a balance remains

-Where the contract itself is void or has been rescinded, or a condition has not been fulfilled, so that no debt has arisen

-Where the debt has been extinguished, such as by completion of the extinctive prescription, but the creditor continues to make claims

In this way, when a person faces the risk of bearing legal liability even though no debt exists, the debtor may consider a lawsuit to confirm the non-existence of debt in order to resolve the legal uncertainty regarding that debt relationship.

When I asked him to repay the money, he said, "There is no obligation to repay with gambling funds." The law said, "Pay the full amount."
Read related articles

3. Lawsuit to Confirm Non-Existence of Debt | Procedure

Let us review the procedure for a lawsuit to confirm the non-existence of debt.

1. Preparing and filing the complaint

The plaintiff (the debtor) files a complaint with the competent court seeking confirmation of the non-existence of debt.

At this stage, the following must be stated.

-The creditor’s information and the details of the opposing party’s asserted claim
-The grounds asserted for the non-existence of the debt
-Objective supporting evidence (the contract, proof of repayment, recorded calls, etc.)

2. The defendant’s submission of an answer

The defendant (the creditor) submits an answer asserting that the debt exists and attaches supporting evidence (the contract, performance-related materials, etc.).

3. Pleading and examination of evidence

Once both parties’ arguments are organized, the court hears both sides at the pleading date and, where necessary, determines whether the debt exists through the examination of evidence, such as an order to produce documents, examination of witnesses, and appraisal.

4. Pronouncement of judgment

The court reviews the facts and evidence as a whole. If it finds that the debt does not exist, it pronounces a judgment confirming the non-existence of the debt; conversely, if it determines that the debt exists, it dismisses the claim.

A look at civil trial procedures
View more

4. Lawsuit to Confirm Non-Existence of Debt | How to Respond

How to respond to a lawsuit to confirm non-existence of debt

Let us review how to respond in a lawsuit to confirm the non-existence of debt, from the perspectives of both the debtor and the creditor.

How the Debtor Can Respond

When a debtor receives a claim from a creditor for a debt that does not actually exist, the debtor should respond by following the procedure below.

1. Clearly ascertaining whether the debt exists

Through the contract, performance-related supporting materials, remittance records, and the like, the debtor should first organize whether the debt arose and, even if it did, whether it was repaid in full.

The debtor confirms whether the timing, circumstances, and grounds of the debt asserted by the opposing party are clear.

2. Securing supporting evidence

If repayment was made, it is necessary to secure objective materials such as a remittance confirmation, a receipt, and a tax invoice.

Because oral repayment, an implied set-off, or a waiver of a claim is difficult to prove, securing written evidence is important wherever possible.

3. Determining the need to resolve legal risk

If the creditor’s demands are repeated, or if compulsory execution is actually foreshadowed, the debtor should promptly consider filing a lawsuit to confirm the non-existence of debt.

Separately, if a suit for return of a loan or a compulsory execution procedure is underway, raising a defense of non-existence of debt within that procedure may be of practical benefit.

How the Creditor Can Respond

If a debtor has filed a suit seeking confirmation of the non-existence of debt, the creditor should respond as follows to protect their legal rights.

1. Securing the grounds for the claim and the performance records

It is important to secure materials that can prove the claim actually arose, such as the contract, the invoice, the delivery statement, and the construction completion confirmation.

If the opposing party has made partial repayment, the creditor should also present materials proving that a remaining debt exists.

2. Establishing a pleading strategy

The creditor responds comprehensively by also reviewing the possibility of additional claims arising, such as whether the maturity date has arrived and whether delay damages have accrued.

If the repayment asserted by the opposing party is not proven, a strategy of actively rebutting it is necessary.

3. Reviewing a counterclaim

In response to the debtor’s lawsuit to confirm the non-existence of debt, the creditor may also consider filing a counterclaim, such as a claim for return of a loan or a claim for the price of goods, to actively exercise the claim.

Case of winning a lawsuit to confirm the non-existence of debt
View more

5. Lawsuit to Confirm Non-Existence of Debt | Cases

Let us review cases involving lawsuits to confirm the non-existence of debt.

CASE 1. Agency that filed a lawsuit to confirm non-existence of debt against popular singer E loses the case

Singer and actor E began a dispute with H Entertainment, the agency to which E had belonged, raising the issue of unpaid settlement amounts, and in response, H Entertainment filed a lawsuit to confirm the non-existence of debt, claiming that it had “paid an excessive settlement amount.”

H Entertainment filed the suit to obtain confirmation that, after paying E a settlement amount of KRW 5.4 billion, it had no further debt, but during the litigation, it abruptly changed its position, asserting that it should be repaid KRW 900 million because it “had not deducted commissions from advertising revenue.”

In response, E also filed a counterclaim to receive the remaining settlement amount, and the court rejected H Entertainment’s argument, holding that “there was an implied agreement that advertising revenue would be paid without deducting commissions.”

Ultimately, the court ordered H Entertainment to pay E an additional KRW 580 million.

Issues:
-The ‘non-existence of debt’ assertion, which is a precondition for a lawsuit to confirm the non-existence of debt, was not proven by H Entertainment
-Although H Entertainment filed the suit asserting that no debt existed after paying the settlement amount, an additional debt was instead recognized

-Whether an implied agreement existed regarding the method of settling advertising revenue was the key issue
-The determination that it was contrary to the principle of good faith for H Entertainment to set the payment amount through its own arbitrary interpretation and then demand its return
-A reversal case in which the creditor (H Entertainment) instead came to bear an additional payment obligation

CASE 2. Aerospace company D partially prevails in a lawsuit to confirm non-existence of liquidated damages for delay against the defense procurement agency

In 2015, Aerospace Company D entered into a contract with the Defense Acquisition Program Administration to deliver 16 sets of division-level reconnaissance unmanned aerial vehicles (UAVs).

When the agency demanded liquidated damages for delay amounting to about KRW 207.7 billion due to the delayed delivery, Company D filed a lawsuit to confirm the non-existence of debt, claiming it had no obligation to pay the liquidated damages.

Company D argued that the cause of the delayed delivery lay in the agency’s requirements for specification design and configuration changes and that it bore no responsibility.

The agency, on the other hand, argued that responsibility for the delayed delivery lay with Company D and claimed the liquidated damages through a counterclaim.

The Seoul Central District Court dismissed the agency’s counterclaim, holding that “Company D bears some responsibility for the delayed delivery, but there is no ground for it to bear the full amount,” and determined that Company D had the right to receive KRW 40.4 billion.

Issues
-Whether the cause of the delayed delivery is attributable to one party or the other
-Whether the agency’s requirements for specification changes constitute grounds for reducing or exempting the liquidated damages
-Whether the liquidated-damages debt exists and the standard for calculating the amount
-The possibility of reducing the liquidated damages stipulated in the contract and its legal validity

You do not have to repay loans incurred due to smishing crimes.
View more

6. Lawsuit to Confirm Non-Existence of Debt | Points of Caution and Issues

A lawsuit to confirm the non-existence of debt involves the following issues and practical points of caution.

▶Reviewing whether an out-of-court resolution is available

To avoid unnecessary escalation of the dispute, it is advisable to first consider dispute mediation through certified mail, civil conciliation, and the like before filing suit.

▶Whether the interest in confirmation is recognized

If a claim to confirm the non-existence of debt is brought based merely on the opposing party’s conjecture or possibility, the court may find that there is no interest in confirmation and dismiss it, so a specific concern of a legal dispute must be proven.

▶The relationship with the extinctive prescription for claims

Because a legal right cannot be exercised once the extinctive prescription for a claim has passed, the limitations period must be confirmed.

▶Preparing for compulsory execution

If the creditor already holds a title for execution of the claim, it may be necessary to file an application for a stay of execution together with the lawsuit to confirm the non-existence of debt in order to block the execution.

In a lawsuit to confirm the non-existence of debt, organizing the facts and securing supporting evidence are central, and comprehensive legal review, including establishing a litigation strategy, securing evidence, and determining whether to file a counterclaim, is necessary.

Our firm has many attorneys experienced in handling lawsuits to confirm the non-existence of debt for various contracts.

From contracts between individuals to contracts between companies, the firm establishes tailored response strategies for each case and provides systematic support.

Please feel free to consult our firm, which can provide one-stop support from consultation through evidence collection to litigation.

To help address legal blind spots, our firm operates branch offices in regions nationwide and provides a 24-hour, 365-day consultation system and non-face-to-face video consultation services.