✍️ 필사 모드: Complete Guide to Korean Law Basics -- Real Estate, Tax, Civil, and Traffic Law

Disclaimer: This article is for educational purposes and does not substitute for actual legal advice. For specific legal matters, please consult a qualified attorney or legal professional.

Table of Contents

1. What Is Law
2. Civil Law Basics
3. Real Estate Law
4. Tax Law Basics
5. Traffic Law
6. Labor Standards Act
7. Consumer Protection Law
8. Criminal Law Basics
9. Legal Dispute Resolution
10. Practical Law Checklist

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1. What Is Law

Definition of Law

Law is the totality of rules that members of society must follow, enforced by state power. Unlike morality or custom, law has coercive power, and violations result in sanctions.

Law serves three main roles:

• Maintaining order: Preserving social stability and peace
• Protecting rights: Safeguarding individual freedom and property
• Resolving disputes: Providing fair standards for conflict resolution

The Legal System

Korea's legal system is broadly divided into public law and private law.

The hierarchy of legal force is: Constitution > Statutes > Presidential Decrees > Ministerial Ordinances > Local Ordinances.

Court Structure

Korea adopts a three-tier trial system.

• Supreme Court: Final appeal, legal review
• High Courts: Appellate courts
• District Courts: First instance, including branch courts
• Special Courts: Family Court, Administrative Court, Patent Court, Military Court

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2. Civil Law Basics

Legal Capacity and Capacity to Act

Legal capacity is the qualification to be a subject of rights and duties. All persons have legal capacity from birth.

Capacity to act is the ability to independently perform valid legal acts.

Formation and Termination of Contracts

A contract is formed by the meeting of offer (proposal) and acceptance.

Four requirements for contract formation:

1. Parties: Subjects of the contract must be determined
2. Meeting of minds: Both parties' intentions must align
3. Definite purpose: Contract content must be specified
4. Legality: Must not violate the law

Statute of Limitations

Important: Even when the statute expires, rights do not automatically extinguish -- the other party must raise the defense.

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3. Real Estate Law

Meaning of Registration

Real estate registration records property rights in the court registry. Korean civil law requires registration for changes in real property rights.

The registry is divided into three parts:

• Title section: Physical status (location, area, structure)
• Section A: Ownership matters (ownership changes, provisional seizure, injunctions)
• Section B: Rights other than ownership (mortgages, leasehold rights)

Always check the registry before any real estate transaction.

Tenant Protection -- Housing Lease Protection Act

The Housing Lease Protection Act protects residential stability for tenants.

Requirements for opposing power:

1. Delivery of housing -- Actual move-in
2. Resident registration -- Completion of registration
3. With both fulfilled, opposing power takes effect at midnight the next day

Priority repayment right is recognized when a fixed date stamp is obtained in addition to opposing power.

Deposit Return

If deposit return is delayed at the end of a lease, the following steps can be taken:

1. Send a certified notice demanding deposit return
2. Apply for a lease rights registration order (to maintain opposing power while moving)
3. File a payment order or civil lawsuit
4. Compulsory execution -- auction of the property after judgment

Lease Renewal Request Right

Tenants can request renewal 6 months to 2 months before the lease expires.

Key points:

• Maximum 4 years of residence including the initial contract
• Rent increase upon renewal limited to within 5%
• Landlord may refuse with legitimate reasons (e.g., personal occupancy)

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4. Tax Law Basics

Income Tax

Income tax is levied on an individual's earned income.

Comprehensive income tax aggregates interest, dividends, business, employment, pension, and other income.

Capital gains tax applies to profits from selling real estate, stocks, etc.

• 1-household 1-home exemption: Hold for 2+ years (2-year residency requirement added for regulated areas)

Value-Added Tax (VAT)

VAT is an indirect tax imposed on the supply of goods or services.

• Standard rate: 10%
• Exempt items: Unprocessed agricultural/fishery products, medical care, education, etc.

Comprehensive Real Estate Tax

Levied on property owners exceeding certain thresholds.

• Assessment date: June 1st each year
• Deduction: 1.2 billion won for 1-household 1-home owners, 900 million won general (based on officially assessed value)
• Payment: Every December

Gift Tax and Inheritance Tax

Gift tax applies when property is received free of charge from another person.

Gift property deduction limits (10-year cumulative):

Year-End Tax Settlement

Essential year-end settlement items for salaried workers:

Income deductions (reduce taxable base):

• Personal deduction: 1.5 million won per dependent
• Credit card usage deduction
• Housing fund deduction
• Housing subscription savings

Tax credits (directly reduce tax amount):

• Medical expenses: 15% of amount exceeding 3% of total salary
• Education expenses
• Donations
• Monthly rent credit (total salary 80M won or less)
• Pension savings/IRP: Up to 9 million won annual limit

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5. Traffic Law

DUI Punishment Standards

Since the 2019 Yoon Chang-ho Act, DUI penalties have been significantly strengthened.

Second DUI offense: 2-5 years imprisonment or 10-20M won fine.

Traffic Violations and Demerit Points

License suspension/revocation:

• 40+ points: License suspension (1 day per point)
• 121+ points in 1 year: License revocation

The 12 Major Traffic Offenses

Traffic accidents involving these 12 offenses can result in criminal punishment even with comprehensive insurance.

The 12 major offenses include: signal violation, centerline crossing, speeding (20+ km/h over), overtaking violation, railroad crossing violation, pedestrian crosswalk violation, unlicensed driving, DUI, sidewalk intrusion, passenger fall prevention violation, school zone safety violation, and unsecured cargo violation.

Insurance Processing

Order of insurance processing after a traffic accident:

1. Preserve the scene and assist the injured
2. Report to police (112) -- especially mandatory for injuries
3. File with insurance -- submit claim and photograph the scene
4. Determine fault ratio -- negotiated between both insurers
5. Repair/treatment -- insurer-designated or self-selected
6. Settlement/litigation -- lawsuit if settlement fails

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6. Labor Standards Act

Employment Contract

Employment contracts must be in writing and provided to the worker. Violation results in a fine of up to 5 million won for the employer.

Mandatory items include: wages, working hours, holidays, annual leave, workplace, and job description.

Dismissal Requirements

For a dismissal to be valid:

• Just cause: Worker's fault or business necessity
• Advance notice: 30 days' notice or 30 days' ordinary wages
• Written notice: Written notification of reason and timing
• Restrictions: No dismissal during treatment for work-related injury or maternity leave

Workers who face unfair dismissal can apply for relief at the Labor Relations Commission within 3 months of dismissal.

Severance Pay

Must be paid to workers who have worked continuously for 1 year or more.

• Calculation: 1 day's average wage x 30 days x total years of service
• Retirement pension systems: Defined Benefit (DB), Defined Contribution (DC), Individual Retirement Pension (IRP)

Annual Leave

• 1 year with 80%+ attendance: 15 days
• Less than 1 year or under 80% attendance: 1 day per month
• 3+ years of service: Additional 1 day per 2 years (maximum 25 days)

Overtime Pay

Legal working hours: 8 hours/day, 40 hours/week.

• Overtime: 50% premium on regular wages
• Night work (10pm-6am): 50% premium
• Holiday work: 50% premium (within 8 hours), 100% premium (over 8 hours)
• When overtime and night work overlap, each premium applies separately (total 100%)

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7. Consumer Protection Law

Right of Withdrawal (Cooling-Off Period)

Under the E-Commerce Act, consumers can withdraw within 7 days of receiving goods. Under the Door-to-Door Sales Act, up to 14 days is possible.

Withdrawal not possible when:

• Value significantly decreased by consumer use
• Goods no longer resalable due to time passage (food, etc.)
• Packaging of reproducible goods damaged (DVDs, software, etc.)
• Custom-made products

Refund must be processed within 3 business days of the withdrawal request.

Product Liability

When a purchased product has defects, the buyer has the following rights:

• Contract termination: When the defect prevents achieving the purpose
• Damages claim: Compensation for losses caused by the defect
• Repair request: Demand for repair
• Price reduction: Demand for price reduction

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8. Criminal Law Basics

Elements of a Crime

Three requirements must be met for a crime to be established:

1. Constituent elements: The act must correspond to a crime defined in criminal law
2. Unlawfulness: The act must be contrary to the entire legal order
3. Culpability: The actor must be blameworthy

Grounds for excluding unlawfulness include self-defense, emergency avoidance, self-help, and victim's consent.

Defamation vs. Insult

Cyber defamation carries heavier penalties under the Information and Communications Network Act.

Statute of Limitations for Criminal Cases

Sexual offenses (against children/youth) and murder have special provisions abolishing or suspending the statute of limitations.

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9. Legal Dispute Resolution

Certified Notice

A certified notice is a document sent through the post office proving that specific content was communicated to the other party.

Effects include: proving delivery of intent, securing evidence, psychological pressure, and interrupting the statute of limitations.

Small Claims Court (Up to 30M Won)

Small claims procedures handle civil cases with claims up to 30 million won in a simplified manner.

Key features:

• Single hearing principle for swift trials
• Cases can be handled without a lawyer
• Simplified evidence examination
• If no objection to the compliance recommendation, the order becomes final

Civil Mediation

Civil mediation uses a judge or mediation committee to reach an agreement between parties.

• Less expensive than litigation (filing fee is 1/5 of lawsuits)
• Swift resolution possible
• Successful mediation has the same effect as a judicial settlement

Legal Aid Corporation

The Korea Legal Aid Corporation provides free legal services to economically disadvantaged citizens.

• Phone consultation: Dial 132 (no area code)
• Qualifications: Basic livelihood recipients, income below 125% of median, national merit holders, persons with disabilities

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10. Practical Law Checklist

Real Estate Checklist

• Did you complete resident registration and get a fixed date stamp?
• Did you check the property registry (mortgages, provisional seizures)?
• Did you specify special terms in the lease agreement?
• Did you obtain lease guarantee insurance?

Workplace Checklist

• Did you receive a written employment contract?
• Do you verify your pay stub monthly?
• Are overtime/night/holiday premiums being paid correctly?
• Do you know your annual leave entitlement?
• Do you understand severance pay calculation?

Consumer Checklist

• Do you know the cooling-off period for online purchases?
• Do you understand exchange/refund standards for defective products?
• Can you identify unfair terms in contracts?
• Do you know the consumer consultation number (1372)?

Traffic Checklist

• Do you know the exact DUI punishment standards?
• Do you know the proper steps after a traffic accident?
• Is your dashcam functioning normally?
• Are you aware of the 12 major traffic offenses?

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Useful Legal Resources