Background
Our client had an agreement under which the counterparty was to pay money, but the counterparty failed to pay the agreed KRW 3.6 million. Through Law Firm Changchun, our client filed suit in 2025. Because the amount was under KRW 30 million, the case proceeded as a small claims case, a simplified and faster procedure for modest disputes.
What Was at Stake
The question was whether our client could recover both the KRW 3.6 million principal and delay damages, a form of interest compensating for late payment, for the period of non-payment.
How Changchun Helped
Changchun claimed the principal together with delay damages running from January 1, 2025. The counterparty did not contest the claim, and the court entered judgment without holding a hearing, granting the claim exactly as filed.
Outcome
In June 2025 the first-instance court ordered the counterparty to pay KRW 3.6 million with delay damages at 5% per year from January 1 to March 27, 2025, and 12% per year from the following day until full payment. The counterparty was ordered to bear the litigation costs, and the judgment was declared provisionally enforceable, allowing enforcement before it became final.
Even for a modest sum, the small claims procedure can deliver an enforceable judgment relatively quickly. (Outcomes depend on the facts of each case.)