Payment Order Procedure

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1. 1Application for a payment order
2. 2Document review
3. 3Issuance and service of the payment order
4. 4Objection period
5. 5Payment order becomes final
6. 6Compulsory execution

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

Time required

The time from application to finality differs from case to case depending on service and other factors, so check the progress with the court handling the case

Cost

Stamp fee (1/10 of a lawsuit) and service fee

Procedure guide

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

1. 1

   First, gather materials that show your right to be paid, such as an IOU, contract, transaction statement, or deposit records. Attach these materials to a payment order application and file it with the court for the debtor's address. The stamp fee (court fee) is 1/10 of what you would pay to file a lawsuit for the same amount, and you can also file electronically.

2. 2

   The court reviews the requirements from the application alone, without calling in the debtor. If the requirements are met, it issues a payment order and sends the authenticated copy to the debtor by mail. If it is not delivered because the debtor's address is unclear, an order to correct the address arrives. If it ultimately cannot be delivered, the case is converted to a lawsuit.

3. 3

   The debtor can file an objection within 2 weeks from the date of service of the authenticated copy of the payment order (Civil Procedure Act §470, §472). Once an objection is filed, the payment order loses its effect and the case moves to an ordinary civil lawsuit. The applicant then pays the difference from the lawsuit stamp fee.

4. 4

   If there is no objection within 2 weeks, the payment order becomes final and has the same effect as a final judgment. The extinctive prescription (the period during which a right can be exercised) of a final payment order is extended to 10 years.

5. 5

   A final payment order becomes an enforceable title (a document that allows compulsory execution). With this document, you apply for compulsory execution, such as seizure, against the debtor's deposits, wages, or real estate. If you do not know the debtor's assets, first apply for a property specification or property inquiry.

6. 6

   If you are the debtor who received a payment order, check the date of receipt right away. After 2 weeks, you lose the chance to dispute the amount. After that, you can challenge it only through a separate lawsuit called a lawsuit of objection to a claim.

Frequently asked questions

Practical questions that come up right away in this procedure.

QWhich court do I file with? Can I file electronically?

The basic rule is to file with the court that has jurisdiction over the debtor's (the person who must pay) address (a district court, branch court, or city/county court). You can also file with the court that has jurisdiction over the debtor's workplace or the place of performance (where the money was to be paid). Electronic filing is also available.If you select 'Application for Payment Order' on the e-litigation website, you can file from home. In that case you pay only 9/10 of the stamp fee.

QHow much does it cost?

The stamp fee is 1/10 of what you would pay for a lawsuit for the same amount, and the service fee covers 6 rounds per party. For example, if you claim KRW 10,000,000, the stamp fee is KRW 5,000 (1/10 of the KRW 50,000 lawsuit stamp fee), which is much cheaper than a lawsuit.If the debtor files an objection and the case moves to a lawsuit, you pay the difference from the lawsuit stamp fee.

QCan I apply even if I do not know the debtor's address?

It is difficult. A payment order takes effect only when it is actually delivered to the debtor. Service by public notice (service replaced by a notice on the court bulletin board) is in principle not allowed.If you do not know the address, the court will issue an order to correct the address (an order to submit a corrected address). You then obtain an abstract of the debtor's resident registration from a community service center and correct the address. If delivery ultimately fails, you must convert the case to a lawsuit or file a lawsuit from the start.

QI received a payment order, but the amount is wrong. What should I do?

File a written objection with that court within 2 weeks from the date you received it. The law has no rule requiring you to state the reasons for the objection, so it is enough to write that you 'object'.You make your specific rebuttal later in an answer, following the court's guidance after the case has moved to a lawsuit. Once you object, the payment order loses its effect and moves to an ordinary lawsuit.After 2 weeks the order becomes final, and you can then challenge it only through a separate lawsuit called a lawsuit of objection to a claim (a lawsuit filed to stop execution). So even while you are deciding whether to object, meet the deadline first.

QOnce it becomes final, will the money come in right away?

No. A final payment order is only 'a document that officially confirms your right to be paid'. If the debtor does not pay voluntarily, you must separately apply for compulsory execution, such as seizing deposits or wages, with the authenticated copy of the order.A final payment order can be executed with the authenticated copy of the payment order, without a certificate of execution (a certification permitting execution). Check with the execution court where you will apply which certificates to submit with your application for compulsory execution.

QCan I do it alone without a lawyer?

Yes, you can. The court decides on the documents without calling in the debtor, so you do not need to go to court.However, if the debtor is likely to dispute it, the case will move to a lawsuit after an objection. So it is better to consider a lawsuit and hiring a lawyer from the start.