Debt Collection South Korea

A Trusted Recovery Solution in South Korea

Collecting a debt in South Korea can seem impossible. Language and cultural barriers, foreign laws and customs, and sheer distance all impose serious challenges.

Debt recovery is simpler when you use a collection agency fluent in the laws and customs of the country where the debtor resides. Cedar Financial offers on-the-ground representatives in South Korea who understand the debt collection practices that work to support full recovery of your funds.

Since 1991, Cedar Financial has served as a trustworthy, nationally licensed debt collection agency, helping businesses collect unpaid accounts internationally. With knowledge of collecting debts in a wide range of different industries, our experienced team collects your debts quickly and effectively so you can receive the payments you’re owed.

With offices in over 150 countries, including South Korea, working with Cedar Financial provides you access to a global network of nationally licensed debt collectors. Our in-depth understanding of local laws, customs and cultures guarantee the best possible debt mediation results.

Comprehensive, People-First Help

At Cedar Financial, we put people first, doing everything we can to get your money back while still preserving a good relationship with your customer. Our strategic customer relations efforts are fair, but firm – ensuring that your reputation is our top priority.

We combine a people-oriented approach with the latest tech-driven solutions to drive results and provide better contact management. This comprehensive method gets the results you need while preserving customer relationships.

Our valuable network of collectors, attorneys, suppliers and vendors allow us to get the job done. We cherish our relationships, no matter how small or large.

Contact us today and learn what we can do for your business.

Frequently asked questions for South Korea

We are a well-respected LAW FIRM in Seoul, comprised of proven respected attorneys and professionals, and part of a prestigious group of international debt recovery professionals. We understand how to deal with the debt and the debtor from the local perspective.

Through Cedar Financial we will take the claims under a contingency basis. If we are not successful in recovery, we do not get paid.

There is no minimum. We accept any number of cases providing there are sufficient supporting documents and relevant information.

We manage and handle all kind of debt; Commercial (Corporations) debts as well as Consumer (Individuals) debts.

Normally one to three months to resolve a matter amicably and without legal process, unless the debtor is particularly unresponsive or stubborn.

Most claims are resolved amicably through the following steps:

  • Corporation background check and a site visit to identify the debtor's information.
  • Phone calls/Mapping/Enquiry to local office verifying the debtor's location.
  • Legal demand letter by lawyer for acknowledgement of the debt, requesting the debtor send a written reply within two weeks to accept or dispute the claim.
  • For unresponsive and non-disputed claims, a follow-up demand notice is made.
  • In the event the claim is disputed, a meeting is proposed at either at our offices or the debtor's location.
  • Arbitration and negotiation follow-through with all parties.
  • Successful negotiation: Payment or settlement in full is finalized. An agreeable repayment plan is arranged, or we obtain a signed promissory note for a partial repayment plan. We then proceed to manage the debtor’s repayment plan.
  • Unsuccessful negotiation: For non-disputed claims, a review for legal payment order (extra-judicial court injunction). In the event of an unresolved disputed claim, a review for legal action (lawsuit).

Generally, 5 years for consumer debt; 3 years for commercial debt.

Yes, we require the following information to proceed with our work:

  • Proof of debt such as SOA (Statement of Account), Invoice, Contract
  • Email correspondence
  • Any disputes
  • Primary contact information to trace the debtor: address, phone, mobile, web site, business card, passport copy.

Yes. We recommend, however, to first conduct an asset investigation to conclude viability of a lawsuit.

For amicable and quick resolution of your claim, fees should not be added. If your claim is litigated, additional fees such as collection costs, attorney fees and interest may be demanded, but not guaranteed to be awarded by the courts.

How Small Businesses Can Successfully Navigate Collections in South Korea

While even domestic debt collection can be tricky for small businesses, adding international collections into the equation can complicate things exponentially. Factors such as language barriers, cultural differences, varying rules and regulations and differing government systems, can make it difficult to understand the right way to collect an amount owed by a foreign company or debtor. As a result, the potential for problems to arise is much greater.

Fortunately, working with the right partner company overseas – especially a reputable debt collection agency – can help you navigate any issues that may occur with ease.

Be Prepared – Review and Ask an Expert
The best way to manage successful debt collection in Korea is to anticipate problems before they arise. Many collections cases are a result of fraud or a scam, so it’s important to do a company profile check before beginning.

For South Korean companies, always obtain and verify the company’s business license number, which shows its legal entity. It can also be helpful to do a small credit check.

After negotiating and outlining a business arrangement, have any written agreements or contracts reviewed by a qualified expert experienced in international business, even if you are sure of your information. With so many differences legally and culturally, it’s always better to be safe than sorry.

When Things Go South
Even with preparation, problems can still arise. Again, still your best bet is to find a qualified expert in international debt collection and business transactions to assist you. You don’t want to be in over your head trying to resolve the issue yourself.

Don’t wait too long to hire the professionals – having a debt collection agency on hand at the outset can mitigate many headaches for small to medium sized businesses when dealing with problems. Especially if a lawyer is involved. Agencies have the know-how and additional local resources to deal with any situation in the most efficient and effective way, and the sooner they start, the better the probability of overcoming issues and achieving the desired collections success.