A coworker won't repay a loan. How do I get my money back in Korea?

You can claim it even without a signed paper. Under Korean law a loan exists once one person agrees to hand over money and the other agrees to return the same amount, so transfer records and messages in which the borrower admits the debt are often enough. Start by asking for repayment in writing with a clear deadline. If that fails, a court payment order is usually the simplest formal route. If the borrower is about to leave Korea, move faster: a provisional seizure (가압류) can freeze their money before it goes abroad.

Is a loan to a friend binding without a contract?

Yes. The Civil Act does not require a written contract for a loan. You need to show two things: that money passed from you to the borrower, and that it was a loan rather than a gift or a payment for something.

• Bank transfers show the first point. Cash is much harder; if you handed over cash, write down now when, where, how much and who saw it.
• Messages show the second. "I'll pay you back after payday", "sorry, next month for sure", or a voice note asking for more time all treat the money as a debt.
• A borrowing note (차용증) is the strongest proof. If the borrower is still on good terms with you, ask for one now, even after the fact: the amount, the date the money changed hands, the repayment date, both names with registration card or passport numbers, and both signatures. A note in your shared language is valid, but a Korean court will expect a Korean translation.

When does the borrower have to pay?

If you agreed a date, the borrower is late from that date. If you never agreed one, you first have to demand repayment and allow a reasonable time. Lateness has a price: for a money debt, the lender can claim late-payment damages at the statutory rate of 5% a year without proving any actual loss, or at an agreed higher rate if that rate is lawful.

The claim does not last forever. An ordinary loan claim expires if it is not exercised for 10 years. If the borrower acknowledges the debt, for example by a partial payment or a message admitting it, the running period is interrupted and starts again.

How do I make a formal demand?

Send the demand in a form you can prove later. Many people use certified content mail (내용증명), a post office service that keeps a copy and records what you sent and when. State the amount, the date of each loan, a deadline for payment and the account to pay into. It does not force anyone to pay, but it fixes the date of your demand and often draws a reply.

One trap: a written demand on its own holds off the expiry period only temporarily. A court claim or a seizure must follow within 6 months for that effect to last. This matters mainly for old debts, but check your dates.

Which court procedure fits my case?

Route	When it fits
Payment order (지급명령)	The debt is clear and the borrower is unlikely to dispute it. Decided on paper, no hearing unless the borrower objects.
Small claims suit (소액사건)	Smaller amounts. A simplified lawsuit with a short hearing.
Ordinary lawsuit	Larger amounts, or the borrower says the money was a gift or was already repaid.

The payment order falls under the Civil Procedure Act (민사소송법) and small claims under the Small Claims Trial Act (소액사건심판법). The upper amount for small claims is set by court rules, so check the current figure before filing. If the borrower objects to a payment order, the case turns into an ordinary lawsuit. A final decision lets you enforce against the borrower's bank account, wages or rental deposit.

The borrower is leaving Korea soon. What can I do?

Foreign residents face this more than anyone, because borrowers on fixed-term visas go home when their contract ends. A private debt is not among the grounds on which immigration law allows a foreigner's departure to be stopped, so you cannot keep the borrower in the country. What you can do is reach their money while it is still here.

A provisional seizure freezes the borrower's assets before you have a judgment. Typical targets are a Korean bank account, a rental deposit the landlord will return at the end of the lease, and unpaid wages or severance. The court has to be persuaded, on a quick showing of evidence, that you have a claim and that without the seizure a later judgment would be impossible or very hard to enforce. A borrower about to leave with their savings is a classic example. Points to know:

• The court can decide on the papers, without a hearing.
• You may be asked to put up security (담보) against loss the seizure causes the borrower.
• Once the order is made, it must be carried out within 2 weeks of your being notified of it.
• As a rule, half of a person's wages and half of their severance cannot be seized, within limits set by decree, and a small protected part of a rental deposit is also exempt.
• The borrower can lift the seizure by depositing the amount stated in the order.

After the seizure you still need a judgment or payment order on the debt itself. If you sit on it, the borrower can ask the court to give you a deadline to file.

Can I file a criminal complaint instead?

Only if the borrower deceived you at the time of borrowing, for example by inventing a reason or never intending to repay. That can be fraud under the Criminal Act. A plain failure to repay is a civil matter, and police will usually point you to the courts. A complaint filed only to put pressure on someone tends to go nowhere and can turn shared friends and coworkers against you.

Next step

Gather the transfer records, messages and any note in one place, and write a timeline of the loan in your own language while you still remember the details. If the borrower has a departure date, do not wait to see whether the demand letter works, because a seizure application takes time to prepare. Consultations are paid; when you contact us, a staff member will call you back and explain the fee.

법무법인 대한중앙
1533-7377

Rules applied

Civil Act (민법) Article 598 (a loan is formed by agreement), Article 603(2) (with no repayment date, the lender demands repayment allowing a reasonable period), Article 379 and Article 397 (late payment of money: statutory rate of 5% a year, no proof of loss needed), Article 162(1) (10-year limitation), Article 168 and Article 174 (interruption by acknowledgement; a demand must be followed within 6 months). Civil Execution Act (민사집행법) Article 276 and Article 277 (purpose of and need for provisional seizure), Article 279 (application and showing of evidence), Article 280 (security), Article 282 (deposit to lift the seizure), Article 287 (order to file the main suit), Article 292(2) (execution within 2 weeks), Article 246(1)4 to 6 (wages, severance and part of a rental deposit protected). Immigration Act (출입국관리법) Article 29(1) with Article 4 (grounds for stopping a foreigner's departure). Criminal Act (형법) Article 347 (fraud). Named without article: 민사소송법 (payment order), 소액사건심판법.

This is general information, not legal advice. Every case is different.