[Deals & Cases] Garnishee’s Obligation to Make Statement in Korea advised by Chaeum

Chaeum has advised and represented a global online travel booking platform company before the court in Korea relating to an execution creditor’s request by submitting the Garnishee’s statement (제3채무자의 진술 의무  in Korean) to the court.

 

As the online travel booking platforms such as this client deal with various service providers such as hotels and rental car companies, whenever there is a credit related claim related to these providers, the court often requires the garnishee to disclose relevant matters relating to any pending claim.

You are required to summit a statement to court.

Under Article 237 of the Civil Execution Act (민사집행법 in Korean), upon an execution creditor’s request, the court may require the garnishee to state, in writing within one week, matters such as (i) whether to acknowledge the claims, and if so, the extent thereof; (ii) whether to intend to pay for the claims, and if so, the extent thereof; (iii) whether there exists any demand by another person for the claims, and if so, the kinds thereof; and (iv) whether there exists any fact that other creditors have seized the claims, and if so, the kinds of such demand.

 

As this is an obligation to make statement in response to the court’s requirement and not a motion to the court (which applies to move the court, i.e. require the court to take any further action), as soon as the garnishee makes its statement according to the requirement, its obligation is deemed satisfied. Accordingly, in principle, there is no further action left for the court. However, as said, should one be required by the court, it is a mandatory responsive action one must take.

 

In relation to the response time, the statement may be submitted within one week from the date of receiving a services of an order and in case of submission after one week, the court may examine (심문 in Korean) the garnishee pursuant to Article 237(3) of the Civil Execution Act, however, the court tends to not give any particular disadvantage solely due to a bit of delays.

 

Should you be served with the Korean court’s order to comply with the garnishee’s obligation to make statement, please do not hesitate to contact us for professional legal services.