Background
In subcontracting arrangements for the supply of labor, one side sometimes takes money for "the four major social insurance contributions" and never actually pays them. Our client suspected that its counterparty was doing exactly that.
What Was at Stake
Whether the counterparty actually paid the contributions is not apparent from the outside. The key was how to prove that "the money received was never paid over."
How Changchun Helped
Using legal procedures including requests for factual inquiries and orders for the production of documents, Changchun confirmed that the counterparty had not in fact paid over the sums received for social insurance contributions, and claimed approximately KRW 100 million as unjust enrichment on that basis.
The court granted Changchun's claim and allowed return of approximately KRW 100 million in unjust enrichment. The case shows that even a counterparty's invisible failure to perform can be brought to light through the right evidence-gathering procedures. (Outcomes depend on the facts of each case and may differ.)