Compulsory Execution against Claims

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1. 1Application for grant of a certificate of execution
2. 2Application for a seizure and collection (transfer) order on a claim
3. 3Issuance and service of the seizure order
4. 4Period for immediate appeal
5. 5Statement and payment by the 3rd-party debtor
6. 6Report of collection / conclusion

• Basic step
• Additional action / option
• Rejection / objection
• End of procedure

Time required

The time until the seizure order and collection differs depending on the case and the 3rd-party debtor (bank, company), so check the progress with the execution court

Cost

Stamp fee, service fee, and fee for grant of a certificate of execution

Procedure guide

Read from start to finish in order. Red text marks deadlines set by law.

1. 1

   First, obtain a certificate of execution (wording certifying that compulsory execution may be carried out) on your enforceable title (the document on which compulsory execution is based), such as a judgment or payment order, and obtain certificates of service and finality (Civil Execution Act §28, §39). A final payment order or decision recommending performance can be executed even without a certificate of execution.

2. 2

   If you do not know at which bank the debtor has deposits or where they receive wages, first proceed with an application for property specification (a procedure making the debtor submit a list of assets to the court) and property inquiry. This is because you can apply only if you specify precisely where to seize.

3. 3

   Apply to the court for the debtor's address for a seizure and collection order (or transfer order) on a claim, precisely specifying the 3rd-party debtor (bank, employer, business partner) and the claim to be seized. In principle, the seizure does not extend to deposits newly made after the seizure, so be careful how you describe the scope of seizure.

4. 4

   Without hearing the debtor, the court issues a seizure order and sends it to the 3rd-party debtor and the debtor. The seizure takes effect when the order reaches the 3rd-party debtor. The debtor may file an immediate appeal within 1 week from the date of service.

5. 5

   The 3rd-party debtor states to the court whether the seized claim actually exists and pays the creditor directly under the collection order. For wages, only the portion above the amount exempt from seizure by law (in principle 1/2 of the wages, minimum KRW 2.5 million per month) is seized.

6. 6

   Execution ends when you report the collected amount to the court. If other creditors seize the same claim and compete, the case moves to distribution proceedings, and each receives a share in proportion to their claims.

7. 7

   A transfer order hands over the seized claim itself to the creditor. In exchange for securing it ahead of other creditors, the creditor bears the risk if the 3rd-party debtor is unable to pay. Decide between a collection order and a transfer order by looking at the 3rd-party debtor's creditworthiness.

Frequently asked questions

Practical questions that come up right away in this procedure.

QWhere and how do I get the certificate of execution, certificate of service, and certificate of finality?

Obtain them at the civil affairs office of the 1st-instance court that pronounced the judgment. Bring an application for grant of a certificate of execution, the authenticated copy of the judgment, and your ID.For e-litigation cases, you can apply for and obtain them on the e-litigation website. Attach a KRW 500 stamp to each of the application for a certificate of execution and the applications for certificates of service and finality.A final payment order or decision recommending performance can be executed without a certificate of execution. So you only obtain certificates of service and finality.

QWhat if I don't know which bank the other party's account is at?

First apply for property specification and property inquiry. Property specification is a procedure that makes the debtor appear in court and submit a list of assets. If that is not enough, apply for a property inquiry.This is a procedure for inquiring, through the court, with financial institutions, the Ministry of Land, Infrastructure and Transport, and others about deposits and real estate. You apply by specifying the institutions to be queried, and the applicant pays the inquiry costs in advance.

QHow much does it cost?

The stamp fee (court fee) for an application for a seizure and collection order on a claim is KRW 4,000 (seizure KRW 2,000 + collection KRW 2,000). The service fee is paid for 2 rounds for each 1 party (creditor, debtor, 3rd-party debtor).If there are several banks as 3rd-party debtors, the service fee increases by that number.

QIf I seize a salary, can I take all of it?

No. In principle, only up to 1/2 of a salary can be seized. Up to KRW 2.5 million per month cannot be seized.If the salary is high, the seizable share may be larger than 1/2. For deposits too, seizure is prohibited up to a combined KRW 2.5 million of deposits in the debtor's name.If there is money placed in a living-expense account, etc., the amount after deducting it is the standard. Money such as basic livelihood benefits and national pension cannot be seized at all.

QOnce I seize it, will the bank pay me right away?

It does not come in automatically. A collection order takes effect when it is served on the bank (3rd-party debtor).From then on, the creditor can claim payment directly from the bank. Check with the bank which documents it requires for payment and when it will pay.If the bank or company refuses to pay without reason, you must file a lawsuit for collection against the 3rd-party debtor. After receiving the money, report the collection to the court.

QShould I choose a collection order or a transfer order?

With a collection order, if you cannot get paid, you can execute again against the debtor's other assets. On the other hand, with a transfer order the claim passes entirely to you and takes priority over other creditors, but if the bank or company cannot pay, you bear that loss and can no longer claim against the debtor.So consider a transfer order only when the 3rd-party debtor is certainly able to pay, like a bank, and there is a risk of competing creditors.