[2026 Guide] “I Lent 36 Million KRW to a Friend, and Now They’re Ignoring Me.” — What I Learned from a Real Win [English Speaking Korean Lawyer, LIBRO]
Introduction (Korean Lawyer’s Guide(2026 version)
“Attorney, I thought we were family.”
I still remember the look on my client’s face when she first walked into my office. Let’s call her Ms. Lee. She had lent a total of 36 million KRW to a close acquaintance. She didn’t just hand over cash; she paid off the friend’s debts and even covered her monthly “Gye” (traditional Korean private fund) contributions.
But when it came time to pay her back, the friend vanished into thin air. Ms. Lee did what most people do—she went to the police.
If you want to know about 2026 Korea Money Guide – “My Friend Won’t Pay Me Back!” How to Write a Korean IOU & File a Payment Order, please refer to this link.
If you want to know how to Sue & Get Settlement Money in Korea (2026 Defamation Laws in Korea Guide) [English Speaking Lawyer. LIBRO], please refer to this link.
1. Why the Police Might Say “No” (The Fraud Trap)
Ms. Lee filed a criminal complaint for Fraud (사기). She was certain it was a scam. However, the police issued a “No Suspicion” (불송치/혐의없음) decision.
Why? Because in Korea, being unable to pay back a debt isn’t automatically a crime. The police noted:
- The History: They had been trading money for years.
- The Awareness: Ms. Lee knew the friend was struggling financially.
- The “Intent”: It was hard to prove the friend planned to steal the money from the very start.
The Lesson: Criminal charges are a high hurdle. If you knew they were broke when you lent the money, the police often see it as a “bad deal,” not a “criminal scam”.
2. The Turnaround: Winning in Civil Court
Despite the police setback, we didn’t give up. We took the fight to the Civil Court.
In a civil debt recovery lawsuit (대여금 반환), the court doesn’t care if the person is a “criminal.” They only care about one thing: Did you lend the money, and has it been paid back?
- The Proof: We presented the bank transfers and evidence of the debt payments.
- The Counter-Argument: The defendant tried to claim the money was for gambling debts and therefore shouldn’t be repaid under “social order” laws.
- The Victory: The court saw through the excuses. There was no proof it was gambling money. The judge ordered the defendant to pay back the full 36 million KRW.
3. Making the Debtor Pay the Price (Interest Rates)
One of the best parts of winning in court is the interest. As of 2026, the rules we used still apply:
- Before the Lawsuit: If you didn’t agree on a rate, you get 5% per year (Civil Act).
- After the Lawsuit: From the moment the legal papers are served until the day you are paid in full, the rate jumps to 12% per year under the “Special Act on Legal Proceedings”.
This 12% is a powerful tool. It makes the debt grow every single day, giving the debtor a massive incentive to settle quickly.
4. FAQ: What Every Foreigner Needs to Know
Q: If the police say it’s not fraud, can I still get my money?
A: Yes. As Ms. Lee’s case proved, a “No Suspicion” criminal result has no power over a civil lawsuit. You can still win based on your bank transfer records.
Q: What if I don’t have a signed contract?
A: Bank transfers and text messages are your best friends. In our case, even paying off a third party on the friend’s behalf was accepted as proof of a loan.
Q: Will suing affect my visa status?
A: No. Protecting your property rights is a legal and protected activity in Korea. It does not negatively impact your residency status.
[These above documents detail a successful debt recovery case where both criminal and civil avenues were pursued. While the police issued a “no suspicion” notification regarding the criminal fraud charge, the Suwon District Court upheld a civil judgment in favor of the plaintiff. The court ordered the defendant to pay 36 million KRW plus a 12% annual interest rate for late payment, confirming that even when a criminal case is dismissed, a civil lawsuit can effectively secure the return of lent funds.]
Final Thoughts
Don’t let a “No” from the police stop you. Reclaiming your money is a marathon, not a sprint. If you have the bank records and the messages, you have a fighting chance.
Attorney Paul
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