Legal Costs Recovery South Korea
When creditors win a lawsuit, they often ask, “Can I recover the attorney fees that I spent?” The answer matters. If the legal fees you pay exceed what you recover from the debtor, litigation might not make financial sense. But when you can recover a portion of those costs from the opposing party, legal action may become worthwhile—even for mid-sized claims. Pureum Law Office is here to explain the procedure of legal costs recovery in South Korea.
How Much Can You Recover in Legal Costs?
Legal action isn’t just about being right—it’s about cost-benefit analysis. Before suing, creditors need to estimate:
- How much of the attorney fees can be recovered?
- Will the recovered amount outweigh the legal expense?
- Is it more cost-effective to use a cheaper lawyer or settle?
Thankfully, Korean law provides a framework to calculate how much of your attorney fees can be included in court-awarded litigation costs.
Korea’s Attorney Fee Recovery Rules
South Korea’s Ministry of Justice (MOJ) helps us to understand. Under the regulation titled “Rules on Including Attorney Fees in Litigation Costs” (amended Dec 28, 2020), the maximum reimbursable fee is calculated using a tiered formula based on the value of the claim.
Here’s the breakdown:
| Claim Value Range | Maximum Reimbursable Fee |
|---|---|
| Up to ₩3 million | ₩300,000 flat |
| ₩3M – ₩20M | ₩300K + 10% of excess over ₩3M |
| ₩20M – ₩50M | ₩2M + 8% of excess over ₩20M |
| ₩50M – ₩100M | ₩4.4M + 6% of excess over ₩50M |
| ₩100M – ₩150M | ₩7.4M + 4% of excess over ₩100M |
| ₩150M – ₩200M | ₩9.4M + 2% of excess over ₩150M |
| ₩200M – ₩500M | ₩10.4M + 1% of excess over ₩200M |
| Over ₩500M | ₩13.4M + 0.5% of excess over ₩500M |
Important: These are not automatic awards, you must prove that you actually incurred the fee, so always share documentation, such as bank transfers, with your lawyer.
Example of Calculating Attorney Fee Recovery
If your claim is ₩70,000,000:
- First ₩50M → Flat reimbursable fee: ₩4.4M
- Next ₩20M → 6% of ₩20M = ₩1.2M
- Total possible reimbursement: ₩4.4M + ₩1.2M = ₩5.6M
This is the maximum the court can order the other party to pay you in litigation costs for attorney fees—only if you actually paid at least this much and can prove it.
Practical Takeaways
- Low claim amount? Consider less expensive legal options.
- Medium-to-high claim? Attorney fee recovery may justify litigation.
- Always keep proof of payment (wire transfers, receipts) to your lawyer.
Final Thoughts: Legal Costs Recovery South Korea
Attorney fees in debt collection lawsuits are partially recoverable—but only up to the legal limit, and only if you prove actual payment. Understanding this system helps you make strategic, cost-effective decisions.
Pureum Law Office is here to guide you through those decisions, get in touch today.
Let us help
