Top-Rated Debt Collection Agency in South Korea
Fast and reliable debt collection in South Korea - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
Recovering your debt in South Korea has never been easier.
Debitura is a specialized debt recovery company in South Korea. Our team of professionals has extensive experience in accounts receivables management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. We possess in-depth knowledge of South Korea debt collection laws and regulations to provide effective and efficient solutions in recovering outstanding debts for businesses.
Receive continuous assistance throughout the entire debt collection process.
Tailored debt recovery approach.
We have more than 500 skilled professionals who specialize in global debt collection.
We boast a 87% success rate at the cheapest cost.
The ultimate guide about debt collection in South Korea
Do you have a problem with someone who owes you money in South Korea? We can help you get your money back! We have helped other businesses before, and we know how to deal with the language and cultural barriers, as well as the distance. It is simpler to use a collection agency that knows the laws and customs of South Korea, and we are that agency.
At Debitura, we make sure that people get their money back. We work hard to get your money while still keeping a good relationship with the person who owes you money. We are fair but firm in our efforts to help you get your money back. If you want to understand the process of collecting debt from start to finish, keep reading this guide. If you would rather work with a local law firm that specializes in collecting debt from people in South Korea, we can help you with that too.
At Debitura, we help you to get the money that someone owes you. You can start today by uploading your claim. We will look at your case and give you three different options for local debt collection lawyers in South Korea within 24 hours. We use a people-oriented approach with the latest tech-driven solutions. This comprehensive method gets better results while preserving customer relationships. Our network of debt collectors, attorneys, suppliers and vendors are important relationships that help us get the job done. We value all of these relationships, no matter how small or large they may be.
Collect your debt in South Korea today for free by creating a free profile and uploading your case in just two minutes.
We use our proven pre-legal recovery process to try and collect your claim for the first 3 months. If we're unsuccessful, there's no charge for our services. It's completely risk-free with our 100% no-cure-no-pay policy.
In case your claim remains unpaid during the pre-legal phase, we offer you three quotes from debt collection attorneys in your region.
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in South Korea
Do you have trouble getting paid by your South Korean customers? We can help you. When someone owes a debt, we call them the debtor. The person they owe the debt to is called the creditor. If the creditor tries to get the money themselves, we call it first-party collection. If the creditor hires someone else to get the money, we call it third-party collections.
The debt collection process in South Korea
The debt collection process in South Korea is conducted in several steps.
The image below explains the process we use for collecting debt in South Korea:
1 Upload your claim:
Unless you want to get your money back yourself, you need to find someone who can help you. Look for a partner who can help you get your money back. If you use Debitura, we will give you three different options from people in the Asia country who can help. This is free - no strings attached.
2 Amicable collection:
We will try to contact the person who owes you money in different ways, like email, text, or letter. We will keep doing this until they pay you back or agree to a plan to pay you back. If we are successful and we get them to pay you back, then you will only have to pay us a small fee. If we are not successful, then you don't have to pay us anything!
If you have not yet received payment from the debtor after trying to work things out amicably, it is time to evaluate what to do next. We will look at the size of your claim, the chance that you will receive payment, and other factors to help you decide what the best next step is. There are three typical next steps:
If your claim is for less than 2,000-5,000 euros, it is often not worth it to take any more legal action. In this case, we recommend "debt surveillance." This means that we will keep trying to contact the person you owe money to and try to reach an agreement about payment
B: Legal collections:
It's a good idea to start a legal process if you have a big claim. This means that you would go through a series of steps to try to get money or something else that you believe you are entitled to. The specific steps you need to take will depend on what you're claiming and how much it's worth. Usually, the whole process takes between 1 and 1.5 years.
C: Debt enforcement:
If the person you are owed money from has said that they owe you money or if you have a court order, you can go to the bailiff's court to get your money.
At Debitura, we can help you with all three steps in South Korea.
Amicable collection in South Korea
At Debitura, we offer a 100% risk-free and efficient process for Amicable collections. This means that you can submit your claim to us, and we will get started within 24 hours.
We will contact your debtor through different methods in South Korea, which could include email, text messages, letters, phone calls, and social media.
The goal of this is to:
A) Get the person who owes you money to pay the whole amount.
B) Get the person who owes you money to agree that they owe you money and start a plan to pay it back.
If the person you are trying to get money from has disagreed with your claim, you cannot try to resolve it peacefully. You must start by going through the legal system.
Get started with
amicable debt collection
Upload your claim and get started with our 100% no-cure-no-pay collection solution.
Legal collection in South Korea
If our local attorney cannot get the debtor to pay you during the amicable phase or if the debtor disputes your claim, we will provide you with 3 free quotes from our local debt collection attorneys. In the legal phase, our local attorney will reach out to your debtor and try to negotiate a payment. Our partners can also go to court and get a payment order via the legal system in South Korea. This payment order can then be used to enforce your claim via enforcement court.
The amount of money you will need to pay a lawyer depends on how difficult your case is and how much work the lawyer will need to do. To get the best price, it is a good idea to ask more than one lawyer for their estimate. You can do this easily by using Debitura.
Get started with
legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in South Korea
If you have a letter from the person you are owed money from, or a court order, you can go to the bailiff's court in South Korea to get your money.
The process and how much it will cost varies depending on your situation. You can upload your case to Debitura. They will give you 3 quotes for your claim within 24 hours.
Get started with
Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in South Korea
If your debtor cannot pay his debts, you can start an insolvency procedure. This is when you try to sell the debtor's assets to get money to pay the creditors. The creditors are people who the debtor owes money to.
The analysis is concluding that the risk of conducting business in South Korea is low. Based on this low score, You can feel reasonably confident that you will be able to get paid when trading with customers in South Korea. Nonetheless, we always recommend doing a specific credit analysis on an individual customer basis before offering any credit. The low risk score is based on the following factors:
The economic risk in South Korea
Our conclusion based on the economic risk factors, is that the economic risk in South Korea is low (2 out of 6). An economic risk of 2 out of 6 is low in Asia.
GDP and economic growth are critical drivers for economic risk.
The GDP of South Korea is 1798,53 bn. USD (2021), growing by 4,02% per year.
In terms of the size of its economy, South Korea ranks #11 out of 183 countries and has a large economy.
Looking at the growth rate, it is ranked #101 out of 183 countries and is therefore considered an excellent growing economy.
GDP per capita is 34758 USD, ranking South Korea number #28 out of 183 countries. This means the purchasing power of citizens in South Korea is high compared to the rest of the world.
You can see a more throughout picture of GDP and economic growth in South Korea in the table below:
Another critical driver for the economic risk score is the inflation rate and the interest rates. You can see a more throughout picture of monetary key performance indicators in South Korea in the table below:
The inflation in South Korea was 2,5% in 2021 which is considered a low inflation rate.
Looking at the interest rate for businesses, it is 2,88%.
The business environment risk in South Korea
Our analysis shows that the business environment risk in South Korea is low (2 out of 6), which is a low risk score in Asia.
Economic freedom and rights has a big influence on the business environment risk in a country. Take a look at the important facts for South Korea in the table below:
As you can see in the table, the property rights index is 81 in South Korea, which is considered quite good in Asia.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 90 in South Korea, a good score for a country in Asia.
South Korea's overall economic freedom index is 74 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in South Korea
The political risk in South Korea is low, with a score of 2/6. This is a low political risk score in Asia.
The governance and political stability indicators are critical drivers for political risk. An overview of South Korea can be seen in the graphs below:
The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.
When trading with businesses in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In South Korea, the rule of law index is at 1,13 points, with the score going from -2.5 (weak) to 2.5 (strong). South Korea has, therefore, a very high rule of law index, which means you have a very good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.
Other drivers for the low political risks are the average control of corruption, the average political stability index, and the normal shadow economy that is 19,83% of South Korea's GDP.
The commercial risk in South Korea
In South Korea, the commercial risk score is 1/4, which in our model is a very low score. This very low commercial risk score is low compared to the average in Asia.
The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for South Korea in the table below:
South Korea has a foreign exchange reserve of 463.28 bn. USD.
South Korea has a positive trade balance of 3,68% of GDP. This means that South Korea imports fewer goods and services than the country exports.
The annual growth of exports of goods and services has been growing 9,88% annually - now 41,72% of GDP. Import of goods and services represents 38,04% of the GDP in South Korea.
The financing risk in South Korea
We have calculated the financing risk to be 1/4, which equals a very low risk. A very low financing risk score is low for countries in Asia.
The country's banking system, efficiency, and stability influence the financing risk. You can find the extra information for South Korea in the table below:
In South Korea, the credit information sharing index is 8 on a scale from 0 (low) to 8 (high). This means the accessibility and quality of credit information available in South Korea is high.
This makes it easy for you to understand the credit risk of your counterpart in South Korea. You should therefore be able to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.
Your rights as a creditor are 5 out of 12 and, therefore, weak.
The very low financing risk for creditors also impacts the low interest rate in the private sector of 2,88%.
Debt Collection in South Korea: Frequently Asked Questions (FAQ)
Debt collection in South Korea involves first-party collection by the creditor or third-party collection by a hired agency to recover debts. The process involves uploading the claim and amicable collection attempts through communication with the debtor either by email, text or letter. If this is unsuccessful, the debtor's ability to repay the debt is evaluated, and the next steps could include debt surveillance, legal collections, or debt enforcement. Debitura can assist in all three steps of the process in South Korea.
The debt collection process in South Korea involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection involves attempting to contact the debtor for payment. If unsuccessful, legal action can be taken. Legal collections involve a legal process and usually take 1-1.5 years to complete. Debt enforcement can be sought if there is a court order or if the debtor acknowledges the debt. At Debitura, we can assist with all three steps.
In South Korea, a civil lawsuit is required for debt collection if the debt is disputed. Debt enforcement and insolvency proceedings are also options. It's important to note that legal actions require a local lawyer. Our local partners can provide free quotes and negotiate payment, while court action can be taken to obtain a payment order for debt enforcement. Insolvency proceedings can also be initiated to liquidate a debtor's assets for payment. It's recommended to compare estimates from multiple lawyers to get the best price. Debitura can assist in this process.
The cost of debt collection in South Korea varies depending on the actions required. Debitura offers a no-cure-no-pay model for pre-legal collection with a success fee of 10-20%. For legal actions, the cost will depend on your specific case and the actions needed. Debitura can provide you with 3 quotes from the best debt collection lawyers in South Korea.
The duration of a debt collection process in South Korea depends on the debtor and the case. If the case can be resolved in the pre-legal phase, the process may take 3-6 months. However, if legal action is required, the process may take 12-18 months. But, our experts work efficiently to resolve the case as soon as possible.