Seizure (Attachment)
Overview
Seizure (압류) is a procedure under the Civil Execution Act (민사집행법) where a creditor, based on a finalized execution title (such as a judgment or settlement record), restricts the debtor's right to dispose of specific property and forcibly converts it into cash to recover the claim. Seizure is the first step of compulsory execution and can be applied to various types of property owned by the debtor, including real estate, movable property, claims, and wages. Once seizure occurs, the debtor cannot freely dispose of the property (e.g., sell, gift, or provide as collateral), and the court-appointed execution officer or a third-party debtor (e.g., the debtor's employer in the case of wage seizure) manages it.
Main Content
1. Types of Seizure
- Real Estate Seizure: Seizure of real estate such as houses, land, and buildings. Once the court registers the seizure, the debtor cannot sell or use the property as collateral. It is later converted into cash through auction proceedings.
- Movable Property Seizure: Seizure of tangible movable property such as cars, jewelry, and home appliances. The execution officer visits the site in person to take possession of and seal the seized items.
- Claim Seizure: Seizure of monetary claims the debtor holds against third parties, such as deposits, wages, rent, and accounts receivable. When the seizure order is served to the third-party debtor (e.g., bank, employer), they must deposit the amount with the court instead of paying the debtor directly.
- Wage Seizure: Seizure of an employee's wage or salary claims. However, to protect the worker's livelihood, a certain amount (e.g., up to 1.5 million won per month) is exempt from seizure, and the seizable portion is limited to a certain ratio (e.g., one-half).
2. Seizure Procedure
- Obtain an Execution Title: First, the creditor must obtain an execution title, such as a court judgment, payment order, or settlement record.
- Apply for Seizure: Based on the execution title, the creditor files an application for seizure and collection order (or auction request) with the court.
- Execute Seizure: Once the court issues a seizure decision, it is carried out through an execution officer (for movable property) or the registry office (for real estate). For claim seizure, the seizure order is served to the third-party debtor.
- Liquidation: The seized property is converted into cash through auction (for real estate and movable property) or collection (for claims) procedures.
- Distribution: After deducting execution costs from the liquidated amount, the remainder is distributed to creditors in proportion to their claims.
3. Effects of Seizure
- Prohibition of Disposal: The debtor cannot transfer, provide as collateral, destroy, or damage the seized property. Violations may lead to a lawsuit to revoke fraudulent acts or criminal penalties (e.g., evasion of compulsory execution).
- Priority Right to Satisfaction: The seizing creditor has the right to be repaid from the seized property in priority over other general creditors (but subordinate to secured creditors such as mortgagees or pledgees).
- Interruption of Prescription: Seizure constitutes a ground for interrupting the statute of limitations, halting the progress of the claim's extinctive prescription.
4. Property Exempt from Seizure
- Essential Living Items: Clothing, bedding, furniture, kitchen utensils, and other items essential for the livelihood of the debtor and their family (Article 195 of the Civil Execution Act).
- Livelihood Benefits and Allowances: Social security benefits such as livelihood benefits under the National Basic Living Security Act, disability pensions, and child allowances.
- Wages Below a Certain Amount: Wages up to 1.5 million won per month (as of 2024) are exempt from seizure, and only one-half of the amount exceeding 1.5 million won can be seized.
- Agricultural and Fishing Tools: Means of livelihood for small-scale self-employed farmers and fishers.
- Religious and Ritual Items: Items necessary for worship or ancestral rites.
5. Release of Seizure
- Full Repayment of Debt: If the debtor fully repays the seizing creditor, the seizure is released.
- Deposit: If the debtor makes a deposit for repayment, the seizure may be released.
- Cancellation Decision: If the court recognizes a defect in the seizure (e.g., seizure of exempt property, procedural violation) and issues a cancellation decision, the seizure is released.
- Withdrawal of Auction: If the creditor withdraws the auction application, the seizure is also released (except when distribution proceedings have already commenced).
Recent Trends
As of 2024–2025, there have been several important changes in seizure-related laws and practices. First, from July 2024, the wage seizure exemption threshold was raised: wages up to 1.5 million won per month are fully exempt from seizure, and only one-half of the amount exceeding 1.5 million won can be seized (previously 1.2 million won). This reflects increases in the minimum wage and inflation. Second, the electronic seizure system has expanded, enabling rapid processing of deposit and wage seizures through computer networks between courts and financial institutions, making it harder for debtors to hide assets. Third, from 2025, seizure procedures for small claims (under 5 million won) have been simplified, allowing creditors to submit applications electronically instead of in paper form. Fourth, to protect debtors facing economic difficulties after COVID-19, a bill has been proposed and is under discussion to limit seizure of a certain amount (e.g., up to 100 million won) of housing lease deposits. Additionally, seizure execution against virtual assets (cryptocurrencies) is increasing, and courts are including Bitcoin and Ethereum in seizure targets through orders to exchanges. However, due to the nature of virtual assets—high price volatility and anonymity issues—execution remains challenging.
Related Topics
- [[Compulsory Execution]]
- [[Auction]]
- [[Debt Collection]]
- [[Civil Execution Act]]
- [[Bankruptcy]]