When doing business in Korea, legal disputes over unpaid service fees or settlements can be a serious risk. One of the most effective legal strategies in such cases is an asset preservation order (also known as provisional attachment or seizure). This remedy ensures that creditors can secure assets in advance to enforce a future judgment.
Our firm, Kang & Shin | English Speaking Lawyers in Korea, recently represented a client in a high-stakes provisional attachment case. We are proud to share that the Seoul district court ruled entirely in our favor, granting full recovery of KRW 669 million against the adversary’s assets, including both real estate and receivables.
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Case Background: Protecting a Sales Company in Seoul
- Our client, a real estate sales company, entered into a business contract in Korea in January 2022 with a developer.
- In August 2024, the parties signed a termination and settlement agreement requiring the developer to pay KRW 617 million in service fees.
- Despite repeated requests, the developer refused to pay, forcing our client to seek legal recourse.
Legal Action and Strategy
As Business & Corporate Lawyers in Korea, we applied the Subcontracting Act, which provides powerful protections for small and medium-sized enterprises. Under this law:
- Settlement fees owed to subcontractors are considered protected payments.
- Overdue payments can accrue interest up to 15.5% annually.
- By July 2025, our client’s total claim, including interest, amounted to KRW 669 million.
We petitioned the court for provisional attachment against the developer’s trust beneficiary rights, presenting evidence of the debtor’s lack of payment plan, heavily encumbered properties, and misleading excuses.
The Court’s Ruling
The Seoul court recognized the urgency and validity of our client’s claim. The court granted a provisional attachment for the full amount of KRW 669 million, ensuring our client’s right to recovery was fully protected.
This victory demonstrates how an English speaking lawyer in Korea can effectively represent foreign and domestic businesses in complex disputes.
Why This Matters for Foreign Businesses in Korea
1. Enforcement is as important as winning. A favorable judgment has no value if the debtor has no assets left. Asset preservation guarantees enforceability.
2. Legal protections for subcontractors are strong. Many foreign businesses are unaware that Korean law provides statutory safeguards under the Subcontracting Act.
3. Act fast to protect your rights. In Korea’s fast-moving business environment, delays can result in the debtor’s assets being dissipated or lost.
Conclusion: Why You Need a Business & Corporate Lawyer in Korea
This case highlights why securing assets early is critical when doing business in Korea.
If you are facing unpaid invoices, contract disputes, or debt collection issues in Korea, our team of English speaking lawyers in Korea can help. As experienced lawyers in Korea, we provide clear bilingual legal support and effective strategies to protect your interests.
Contact Kang & Shin today to discuss how we can help safeguard your rights in Korea.