An Incheon Law Firm Assistance Case | Full Recovery of a Loan With the Assistance of an Incheon Law Firm

The client is the corporate representative of a financial institution.

The defendant visited the client's financial institution to obtain a loan.

The financial institution then extended a loan to the defendant.

However, the defendant did not repay the loan obligation even after the loan due date had passed.

In the end, the client requested the assistance of an Incheon law firm in order to recover the loan obligation from the defendant.

The Incheon law firm explained that, if the other party does not repay the money, one may proceed with a 🔗claim for return of a loan.

If the debtor does not repay the money without a legitimate reason, one may file a lawsuit and recover the loan through legal proceedings.

A loan claim refers to a bank extending a loan.

Put simply, it refers to the creditor's right to receive repayment of the claim when the creditor has extended a loan to the debtor.

As with a financial institution above, it may extend loans to individuals or businesses.

If the other party then falls behind on the loan, the business can proceed with a lawsuit for the return of the loan and recover it.

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

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

※ Civil Act Article 390 (Non-Performance of Obligations and Damages)

If an obligor fails to perform in conformity with the substance of the obligation, the obligee may claim damages. This does not apply, however, where performance has become impossible without the obligor's intent or negligence.

※ Civil Act Article 393 (Scope of Damages)

(1) Damages for non-performance of an obligation are limited to ordinary damages.
(2) The obligor is liable to compensate for damages arising from special circumstances only where the obligor knew or could have known of those circumstances.

*Circumstances may vary depending on the individual, so for an accurate review, please obtain a 🔗legal consultation with an attorney.

The client's business lent the money to the defendant but has not been repaid.

The Incheon law firm therefore argued that the defendant has an obligation to repay the loan.

The defendant has not repaid the loan to the client's business even though the loan repayment period has passed.

A loan borrowed from a financial institution is subject to a 5-year extinctive prescription.

The Incheon law firm argued that the defendant is liable to pay the loan together with delay damages.

The defendant argued, citing a 'proposal to abolish the joint guarantee system in the secondary financial sector,' that joint guarantees for personal loans should be prohibited.

The Incheon law firm rebutted this and emphasized that there was no evidence recognizing the existence of a right of termination.

The corporate client, the representative of a financial institution, proceeded with a lawsuit for the return of a loan in order to recover it from a debtor who had not repaid the loan.

If you have been unable to recover a loan, pressuring the debtor directly is an unlawful method, so recovering the claim through legal proceedings is a sound approach.

For corporate clients, Daeryun derives a rapid response approach ranging from advance management of legal risks to the establishment of contingency strategies.

If you face a situation like the one above, please request the assistance of a Daeryun 🔗Incheon attorney, where specialists in corporate, civil, criminal, and other fields collaborate to assist clients.