Many of our clients frequently ask about contingency fee agreements when hiring legal representation for criminal cases in Korea. Some have even shared experiences where other Korean lawyers demanded or already received contingency fees, leading them to question the validity of such agreements. This article, written by Senior Partner Simon Lee at Pureum Law Office, aims to clarify the legal standing of contingency fees in Korean criminal matters, especially in light of a significant Supreme Court ruling.
Understanding Korean Criminal Lawyer Fees and Contingency Agreements
Historically, Korean criminal lawyer fees sometimes included a contingency component, often referred to as a “success fee.” This meant that a portion of the lawyer’s payment was contingent on the outcome of the case, such as an acquittal, a suspended sentence, or release on bail. While this might seem straightforward, the Supreme Court of Korea has now fundamentally changed how these agreements are viewed.
The Unconstitutionality of Contingency Fees: A Landmark Ruling
The Supreme Court of Korea has made it unequivocally clear that contingency fee agreements in criminal cases are against public order and good morals. The Court emphasized that while a lawyer’s efforts to secure favorable outcomes for their client are legitimate, linking these efforts directly to monetary compensation undermines the public mission of a lawyer. This mission, to uphold fundamental human rights and realize social justice, is compromised when financial gain is directly tied to the outcome of an investigation or trial. The Court found that such agreements significantly erode the trust of clients and the general public in the judicial system. Therefore, contingency fee agreements in Korean criminal cases can now be deemed null and void if they violate good morals and social order.
Past Practices vs. Future Validity of Korean Criminal Lawyer Fees
It’s important to understand the historical context. The concept of “good morals and social order” is always evolving. The Court acknowledged that, in the past, the Supreme Court generally upheld the validity of contingency fee agreements. Even the Korean Bar Association’s past regulations and recommended forms for criminal case retainers included provisions for success fees. This meant that both lawyers and clients often didn’t fully recognize the issues associated with these agreements or their potential impact on their validity. As a result, it was common for even standard Korean criminal lawyer fees to be structured as contingency fees.
Considering these circumstances, the Supreme Court ruled that past fee agreements, merely because they were labeled as “contingency fees,” cannot be unilaterally deemed invalid under Article 103 of the Civil Act.
However, the Court made it abundantly clear: going forward, any contingency fee agreement entered into for a criminal case after this ruling will be considered void under Article 103 of the Civil Act. This landmark decision overturns previous Supreme Court precedents that had allowed lawyers to claim the full agreed-upon fee unless it was deemed excessively unfair.
What This Means for Your Korean Criminal Lawyer Fees
If you are a foreign client involved in a Korean criminal case and have been asked to sign, or have already signed, a contingency fee agreement, it’s crucial to understand the implications of this ruling. Such agreements, particularly those made after the Supreme Court’s pronouncement, are now definitively considered unconstitutional and invalid.
If you have already paid a contingency fee to a lawyer for a criminal case, you may be entitled to a refund based on the principle of unjust enrichment.
Contact Us for Legal Advice on Your Korean Criminal Lawyer Fees
Navigating the complexities of Korean law, especially as a foreign client, can be challenging. If you have any questions about Korean criminal lawyer fees, contingency fees, or believe you may have been subject to an invalid success fee agreement in a criminal case, we strongly advise you to seek legal consultation.
At Pureum Law Office, our Senior Partner Simon Lee is dedicated to providing clear and comprehensive legal guidance to our international clients.
Contact us today:
- Email: ask@pureumlawoffice.com
- Phone: +82 2 790 7303
- Or visit our contact us page on our website.
We are here to ensure your rights are protected and that you receive fair and ethical legal representation in Korea.
