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Question 1Korean civil rights, obligations and litigation
Under Article 103 of the Civil Act (Juridical Acts Contrary to Public Policy), which of the following agreements is null and void ab initio (무효) as contrary to good morals and social order?
- A standard commercial lease agreement for an office in downtown Seoul
- A contract promising to pay a substantial monetary bounty to a witness in exchange for delivering perjured testimony in court Correct answer.
- A bank loan agreement providing for the statutory default interest rate
- A residential sale agreement stipulating a standard 10% earnest money deposit
Explanation
Under Article 103 of the Civil Act, a juridical act contrary to good morals and social order is absolute nullity (반사회질서의 법률행위). An agreement promising monetary compensation in exchange for false courtroom testimony subverts the administration of justice and is void ab initio.
Question 2Korean civil rights, obligations and litigation
Under Article 104 of the Civil Act (Unfair Juridical Act / 불공정한 법률행위), what tripartite elements must be established to render a contract void?
- The contract must involve foreign currency, written in ink, and witnessed by three notaries
- There must be a conspicuous disproportion between performance and counter-performance, resulting from the other party exploiting the victim's rashness (경솔), distress (궁박), or inexperience (무경험) Correct answer.
- The contract must be executed on a national public holiday without court permission
- The contract must have been drafted by a non-licensed individual
Explanation
Article 104 provides that a juridical act which has conspicuously lost fairness through the distress, rashness, or inexperience of a party shall be void. Supreme Court precedent establishes that 'distress' includes economic, physical, or psychological emergencies, and the beneficiary must have known and exploited such vulnerability.
Question 3Korean civil rights, obligations and litigation
Under Article 109 of the Civil Act (Declaration of Intention Under Mistake / 착오로 인한 의사표시), under what condition is a party precluded from rescinding a contract entered into under a mistake in an essential element?
- When the mistake was caused by the party's own gross negligence (중대한 과실) Correct answer.
- Whenever the contract involves real property valued above KRW 50,000,000
- Whenever the rescinding party is an incorporated commercial company
- Whenever the other party refuses to consent to the rescission
Explanation
Under Article 109(1) proviso of the Civil Act, a declaration of intention made under a mistake in any essential element of the juridical act may be rescinded; provided, that if the mistake was caused by gross negligence (중대한 과실) on the part of the declarant, they shall not rescind it (unless the counterparty knew of the mistake and maliciously took advantage of it).
Question 4Korean civil rights, obligations and litigation
Under Article 126 of the Civil Act (Apparent Representation Exceeding Authority / 권한을 넘은 표현대리), what must the third party prove to hold the principal bound by the unauthorized acts of the representative?
- That the representative had no basic power of representation whatsoever
- That the representative possessed basic authority of representation (기본대리권), and the third party had justifiable grounds (정당한 이유) to believe that the representative had the authority to perform the specific act in question Correct answer.
- That the principal was traveling outside the country at the time
- That the representative was the spouse of the third party
Explanation
Article 126 requires: (1) an existing basic power of representation (which can arise from daily household affairs representation, statutory representation, or basic mandate), (2) an act exceeding that authority, and (3) justifiable grounds for the third party to believe the representative had authority at the time of the act.
Question 5Korean civil rights, obligations and litigation
Under Article 186 of the Korean Civil Act (Effect of Real Right Changes over Real Property), when does the acquisition or transfer of a real property right (물권변동) take legal effect between parties?
- Immediately upon signing an informal private contract
- Upon payment of the initial down payment (계약금)
- When the transfer is officially registered in the public Real Estate Register (등기하여야 그 효력이 생긴다) Correct answer.
- When the buyer takes physical possession of the front door keys
Explanation
Korea follows the principle of formalistic real right alteration (성립요건주의 / 형식주의): under Article 186, the acquisition, transfer, or loss of real property rights by juridical acts takes effect only upon official registration in the real estate register.
Question 6Korean civil rights, obligations and litigation
Under Article 245(1) of the Civil Act, what are the statutory requirements for acquiring ownership of real property through 'Possessory Acquisitive Prescription' (점유취득시효)?
- Peaceful and open possession with the intention of ownership (소유의 의사) for an uninterrupted period of 20 years, followed by registration of title Correct answer.
- Possession for 5 years with a written lease agreement
- Possession for 10 years by registered title holder without actual physical occupancy
- Occasional weekend farming for 3 consecutive seasons
Explanation
Under Article 245(1), a person who has for 20 years peaceably and openly possessed real property with the intention of ownership (자주점유) acquires title by completing registration thereof. The claim is a personal claim for registration against the registered owner at the time prescription expires.
Question 7Korean civil rights, obligations and litigation
Under Article 256 of the Civil Act (Accession to Real Property / 부동산에의 부합), when does a thing attached to an immovable NOT belong to the owner of that immovable?
- Whenever the owner of the immovable is absent from the country
- When the attached thing was affixed by another person based on a legitimate legal title (권원에 의하여 부속된 것), provided it retains its independent economic identity Correct answer.
- Whenever the attached item costs more than KRW 1,000,000
- Only when the immovable is owned by the municipal government
Explanation
Article 256 provides that the owner of an immovable acquires ownership of anything attached thereto; provided, that this shall not apply to things attached by another person by virtue of a title (권원에 의하여 부속된 것) that retain independent structural and economic identity (e.g. fixtures added by a lawful lessee).
Question 8Korean civil rights, obligations and litigation
Under Article 358 and Article 359 of the Civil Act, what is the scope of a registered hypothec (저당권) over fruits (과실) generated by mortgaged real property?
- A hypothec extends to all natural fruits collected by the mortgagor at any time, even before default
- A hypothec does not extend to fruits until after the mortgaged property has been placed under court seizure (압류) in execution proceedings Correct answer.
- A hypothec never extends to fruits under any circumstances
- Fruits belong exclusively to the local district tax office
Explanation
Article 359 of the Civil Act establishes that a hypothec shall extend to fruits that the mortgagor receives or is entitled to receive from the mortgaged property after attachment (seizure / 압류) has been effected in execution, but not prior to seizure.
Question 9Korean civil rights, obligations and litigation
In a root-mortgage (근저당권 / Article 357 of the Civil Act), what is the legal effect when the principal secured claim is 'determined' (피담보채권의 확정)?
- The root-mortgage is instantly extinguished and cancelled from the register
- The revolving nature of the root-mortgage terminates, and it is converted into an ordinary fixed hypothec (보통저당권) securing the fixed debt balance up to the maximum limit (채권최고액) Correct answer.
- The maximum debt limit automatically doubles
- The debtor is exempt from paying any accrued interest
Explanation
Upon determination (확정), the root-mortgage loses its revolving characteristic (under which future debts could continuously enter). It converts into a standard fixed hypothec, locking in the existing principal balance, interest, and penalties up to the registered maximum debt amount (채권최고액). Any new advances made after determination are not secured.
Question 10Korean civil rights, obligations and litigation
According to established Supreme Court precedent, which of the following is a mandatory condition for the establishment of a 'Customary Legal Surface Right' (관습법상 법정지상권)?
- The land and building must have belonged to the same owner at the time title to either was transferred through sale or other disposal, and there must be no agreement to demolish the building Correct answer.
- The building must be constructed of reinforced concrete and exceed five stories
- The land must be registered in the commercial register rather than the real estate register
- The building owner must pay a statutory fee to the Ministry of Justice
Explanation
Customary legal surface rights require: (1) identity of ownership of the land and building at the time of alienation, (2) the land and the building coming into separate ownership through a sale, gift, compulsory auction, public auction, partition, or other cause (the surface right arising on enforcement of a hypothec is instead the statutory surface right of Civil Act Article 366), and (3) the absence of a special agreement between the parties requiring demolition of the building.
Question 11Korean civil rights, obligations and litigation
Under Article 404 of the Civil Act, when may a creditor exercise a 'Creditor's Subrogation Right' (채권자대위권) to enforce a claim belonging to the debtor against a third-party debtor?
- Whenever the creditor wishes to harass the debtor's business partners
- When necessary to preserve the creditor's claim (채권을 보전하기 위하여), generally requiring the debtor's insolvency (무자력) in monetary claims, where the claim has matured and the debtor fails to exercise it Correct answer.
- Only when authorized in writing by the Chief Justice of the Supreme Court
- Whenever the third party has lived in the same apartment complex as the creditor
Explanation
Article 404 allows a creditor to exercise rights belonging to the debtor to preserve their claim. For monetary claims, the debtor must be insolvent (무자력) so that exercising the right is necessary to secure satisfaction. The claim must also be due, and the debtor must be failing to exercise their own right.
Question 12Korean civil rights, obligations and litigation
Under Article 450(2) of the Civil Act, what formality is required for an assignment of a nominative claim (지명채권양도) to be asserted against a third party other than the obligor (such as a competing assignee or attaching creditor)?
- Oral notification made in the presence of two lay witnesses
- Notice by the assignor to the obligor, or consent by the obligor, evidenced by an instrument bearing a certified fixed date (확정일자 있는 증서) Correct answer.
- Publishing a public advertisement in a daily newspaper
- Filing a criminal complaint with the district police
Explanation
Under Article 450(2), an assignment cannot be asserted against a third party other than the debtor unless the notice or consent is effected by an instrument bearing a certified fixed date (확정일자 있는 증서, such as content-certified mail / 내용증명우편 or a notarial deed). Priority between competing assignees is determined strictly by the arrival date of such fixed-date notice.
Question 13Korean civil rights, obligations and litigation
In a contract for the purchase of real property, what is the legal relationship between the seller's obligation to deliver ownership transfer registration documents and the buyer's obligation to pay the remaining purchase balance?
- The buyer must pay 100% of the balance six months before receiving any documents
- The obligations stand in a relationship of simultaneous performance (동시이행관계), entitling either party to refuse performance until the other tenders counter-performance Correct answer.
- The seller's obligation is extinguished once the contract is signed
- The obligations are subject to lottery selection by the municipal registry office
Explanation
Under Article 536 of the Civil Act, in bilateral synallagmatic contracts, the obligations of both parties are in a relationship of simultaneous performance (동시이행의 항변권). The seller must tender valid documents necessary for title transfer simultaneously with the buyer tendering payment of the balance.
Question 14Korean civil rights, obligations and litigation
Under Article 565(1) of the Civil Act (Earnest Money / 해약금), until what point may a seller rescind a contract by repaying double the earnest money received?
- At any time up until 10 years after registration
- Only until either party has commenced performance of the contract (당사자의 일방이 이행에 착수할 때까지), such as payment of the intermediate payment (중도금) Correct answer.
- Only within forty-eight hours of receiving the earnest money
- Whenever the seller changes their mind, even after full registration has passed
Explanation
Under Article 565(1), the deliverer may rescind by waiving earnest money, and the receiver by reimbursing double the amount, provided neither party has commenced performance (이행 착수 전). Once an intermediate payment (중도금) is made, performance has commenced and unilateral rescission by forfeiting/doubling earnest money is no longer permitted.
Question 15Korean civil rights, obligations and litigation
Under Article 750 of the Civil Act, which of the following is NOT an indispensable element required to establish general tort liability (불법행위책임)?
- Intent or negligence on the part of the actor (고의 또는 과실)
- Illegality of the act (위법성)
- The defendant must possess an active commercial business license Correct answer.
- Damage suffered by the victim, and adequate causation between the act and the damage
Explanation
The elements of general tort liability under Article 750 are: (1) intentional or negligent act, (2) capacity to be responsible (책임능력), (3) illegality (위법성), (4) occurrence of damage, and (5) causation between the act and damage. Holding a commercial business license is completely irrelevant.
Question 16Korean civil rights, obligations and litigation
Under Article 756 of the Civil Act (Employer's Liability / 사용자책임), how may an employer legally exempt themselves from liability for damages caused by an employee to a third party in the execution of the undertaking?
- By filing for corporate dissolution within three business days
- By proving that the employer exercised substantial care in selecting the employee and in supervising the undertaking, or that the damage would have occurred even if substantial care had been exercised Correct answer.
- By demonstrating that the employee was paid on an hourly wage basis rather than an annual salary
- By showing that the employee possessed a valid driver's license
Explanation
Article 756(1) proviso establishes that an employer is not liable if they exercised substantial care (상당한 주의) in the selection of the employee and in the supervision of the business, or if the damage would have occurred notwithstanding the exercise of substantial care. In judicial practice, Korean courts hold this standard of proof to an exceptionally high threshold.
Question 17Korean civil rights, obligations and litigation
Under Article 815 No. 1 of the Civil Act, what is the consequence when a marriage is registered without any genuine consensus between the parties to marry (혼인의사의 합치가 없는 때)?
- The marriage is valid but subject to an administrative fine of KRW 100,000
- The marriage is null and void (무효) Correct answer.
- The marriage is automatically converted into a de facto common-law marriage
- The marriage becomes irrevocable after six months
Explanation
Article 815 No. 1 of the Civil Act explicitly provides that a marriage is null and void (무효) where there is no agreement between the parties to marry (혼인의 합의가 없는 때). This includes sham marriages entered into solely for immigration or financial fraud without genuine intent to form a marital community.
Question 18Korean civil rights, obligations and litigation
Under Article 830 of the Civil Act (Peculiar Property and Property of Unclear Title / 특유재산과 귀속불명재산), what is the statutory presumption regarding property acquired during marriage in the name of one spouse?
- It is presumed to be the joint property of both spouses in equal 50/50 shares
- It is presumed to be the peculiar property (특유재산) of the spouse under whose name it was acquired Correct answer.
- It is presumed to belong to the parents of the husband
- It is confiscated by the state upon registration
Explanation
Korea adheres to the separate property system between spouses (부부별산제). Under Article 830(1), property acquired during marriage under the name of one spouse is presumed to be that spouse's peculiar property (특유재산). While it may be subject to division upon divorce (Article 839-2), during the marriage the named spouse is the legal owner.
Question 19Korean civil rights, obligations and litigation
Under Article 1000(1) of the Civil Act, what is the correct statutory priority order of heirs in intestate succession?
- 1st: Lineal ascendants; 2nd: Lineal descendants; 3rd: Siblings; 4th: State
- 1st: Lineal descendants (직계비속); 2nd: Lineal ascendants (직계존속); 3rd: Siblings (형제자매); 4th: Collateral blood relatives within the 4th degree (4촌 이내의 방계혈족) Correct answer.
- 1st: Surviving spouse alone; 2nd: Firstborn son; 3rd: Village community
- 1st: Siblings; 2nd: Lineal descendants; 3rd: Cousins; 4th: Creditors
Explanation
Article 1000(1) provides the strict order of inheritance: (1) Lineal descendants, (2) Lineal ascendants, (3) Siblings, (4) Collateral blood relatives within the 4th degree. Under Article 1003, the surviving spouse becomes a co-heir with descendants (1st rank) or ascendants (2nd rank), and becomes sole heir only if neither descendants nor ascendants exist.
Question 20Korean civil rights, obligations and litigation
Under Article 1009(2) of the Civil Act, what is the statutory inheritance portion (법정상속분) of a surviving spouse when co-inheriting with children of the deceased?
- The spouse receives an equal portion to each child (1.0 to 1.0)
- The spouse's portion is increased by 50% over the portion of each child (1.5 to 1.0) Correct answer.
- The spouse receives 100% of the estate, and children receive nothing
- The spouse receives only 10% of the estate
Explanation
Under Article 1009(2), where a spouse co-inherits with lineal descendants (or lineal ascendants), the spouse's share is increased by 50% over the share of a lineal descendant (ascendant). Thus, if there are two children and a spouse, the ratio is 1.0 : 1.0 : 1.5 (yielding 2/7 for each child and 3/7 for the spouse).
Question 21Korean civil rights, obligations and litigation
Under Article 15 of the Act on the Registration of Family Relations (가족관계의 등록 등에 관한 법률), which of the following is NOT one of the five statutory certificates issued from the family relation register?
- Basic Certificate (기본증명서)
- Marriage Relation Certificate (혼인관계증명서)
- Certificate of Criminal Convictions and Driving Records (범죄경력 및 운전경력증명서) Correct answer.
- Adoption Relation Certificate (입양관계증명서)
Explanation
Under Article 15(1), the five statutory family relationship certificates are: (1) Family Relation Certificate (가족관계증명서), (2) Basic Certificate (기본증명서), (3) Marriage Relation Certificate (혼인관계증명서), (4) Adoption Relation Certificate (입양관계증명서), and (5) Full Adoption Relation Certificate (친양자입양관계증명서). Criminal and driving records are police records, not family register certificates.
Question 22Korean civil rights, obligations and litigation
Under Article 84 of the Act on the Registration of Family Relations, what document must generally accompany a Notification of Death (사망신고)?
- The deceased person's primary school graduation diploma
- A medical certificate of death (진단서 또는 검안서) issued by a licensed medical practitioner Correct answer.
- A notarized list of all personal debts owed by the deceased
- An approval letter from the Ministry of Land, Infrastructure and Transport
Explanation
Article 84(2) mandates that a notification of death must be accompanied by a diagnosis or post-mortem examination certificate (진단서 또는 검안서) prepared by a medical doctor. If unavoidable circumstances prevent obtaining one, a document proving death certified by an authorized official may be substituted.
Question 23Korean civil rights, obligations and litigation
According to Supreme Court precedent regarding the rectification of family register entries, what standard applies when an individual seeks to correct their recorded date of birth to match their true biological date of birth?
- The registered date cannot be altered under any circumstances once entered
- The applicant must present clear, objective evidentiary proof (such as hospital birth records, delivery registers, or scientific documentation) establishing that the registered date diverges from true biological birth Correct answer.
- The applicant can change their birth date freely once every three years without evidence
- The change is permitted only if the applicant is under 10 years of age
Explanation
Settled Supreme Court practice on register rectification holds that, because the register enjoys public credibility and governs vital rights, correcting a recorded birth date requires Family Court permission granted on clear and objective evidence - delivery logs, obstetric medical records, or contemporaneous certificates - that the recorded entry does not match the true date of birth. Self-serving statements of the applicant or relatives are not enough.
Question 24Property, commercial and family registration practice
Under Article 23(1) of the Real Estate Registration Act (부동산등기법), what is the foundational principle governing applications for real estate registration?
- The Principle of Unilateral Application by the purchaser alone
- The Principle of Joint Application (공동신청주의): registration must be applied for jointly by the person entitled to register (등기권리자) and the person obliged to register (등기의무자), unless provided otherwise by statute Correct answer.
- The Principle of Automatic Administrative Registration ex officio by local tax officers
- The Principle of Mandatory Registration by Court Bailiffs
Explanation
Article 23(1) establishes the Principle of Joint Application (공동신청주의): applications must be made jointly by the right-holder (등기권리자, who gains rights) and the duty-holder (등기의무자, who loses rights). Unilateral applications are exceptional and permitted only where statutory exceptions apply (e.g. inheritance, final judgment, initial ownership preservation).
Question 25Property, commercial and family registration practice
Under Article 29 of the Real Estate Registration Act, which of the following is a mandatory statutory ground for which a registration officer MUST dismiss/reject (각하하여야 한다) an application for registration?
- The application fee was paid in fifty-won coins
- The case does not fall within the jurisdiction of the registry office (사건이 그 등기소의 관할에 속하지 아니한 때), or the matter applied for is not registrable (사건이 등기할 것이 아닌 때) Correct answer.
- The applicant arrived at the registry office at 09:15 AM rather than 09:00 AM
- The applicant's residential address is located in another province
Explanation
Article 29 lists 11 grounds for mandatory dismissal (각하), headed by No. 1 (lack of territorial jurisdiction) and No. 2 (the matter is not registrable under law, such as registering non-registrable rights or violating statutory forms). Registrations made in violation of No. 1 or No. 2 are void ab initio and subject to ex officio cancellation.
Question 26Property, commercial and family registration practice
Under Article 88 and Article 91 of the Real Estate Registration Act, what is the primary legal function of a 'Provisional Registration' (가등기)?
- To preserve the ranking (순위보전의 효력) of a claim for the creation, transfer, modification, or extinction of a real right, so that upon subsequent principal registration (본등기), the rank relates back to the date of the provisional registration Correct answer.
- To immediately convey full substantive title to the applicant
- To exempt the property from all future municipal property taxes
- To convert a residential building into a commercial entity
Explanation
A provisional registration (가등기) preserves priority (순위보전). While it confers no immediate substantive real right, once principal registration (본등기) is effected, the rank of the principal registration dates back to the rank number of the provisional registration, causing any intervening inconsistent intermediate registrations to be cancelled ex officio.
Question 27Property, commercial and family registration practice
Under Article 3 of the Real Estate Registration Act, which of the following rights over real property can NOT be registered in the Real Estate Register?
- Right of Retention (유치권) and Possession (점유권) Correct answer.
- Ownership (소유권) and Superficies (지상권)
- Jeonse right (전세권) and Hypothec (저당권)
- Mortgage of rights (권리질권) and Real Estate Lease (부동산임차권)
Explanation
Article 3 enumerates registrable rights: ownership, superficies, servitudes, jeonse, hypothecs, right pledges over hypothecs, and registered leases. Possession (점유권) and Right of Retention (유치권) arise and exist solely through factual physical control/occupancy and are fundamentally non-registrable.
Question 28Property, commercial and family registration practice
Under Article 65 of the Real Estate Registration Act, who among the following is entitled to apply for an initial 'Registration of Ownership Preservation' (소유권보존등기) on unregistered land?
- A person certified as the initial owner by the Cadastral Register (토지대장), an heir or universal successor, or a person who proves ownership by a conclusive court judgment against the registered owner Correct answer.
- Any person who claims to have walked past the land within the past year
- A tenant who leases the neighboring property
- The contractor who paved the public asphalt road adjacent to the land
Explanation
Article 65 provides that ownership preservation registration for land may be applied for by: (1) a person registered as the owner or their universal successor in the land ledger/forest ledger, (2) a person who proves ownership by a conclusive court judgment, or (3) a person who acquired ownership through expropriation.
Question 29Property, commercial and family registration practice
Under Article 81 and Article 82 of the Real Estate Registration Act, how must an application for 'Registration of Real Estate Trust' (신탁등기) be filed relative to the registration of transfer of ownership to the trustee?
- The application for trust registration must be filed simultaneously in the same single application (동일한 신청정보로 일괄하여 동시에 신청) with the registration of transfer of ownership resulting from the trust Correct answer.
- The trust registration must be filed at least two years after the ownership transfer
- Trust registration is entirely optional and never recorded in the register
- Trust registration can only be performed by the Ministry of Economy and Finance
Explanation
Under Article 82 of the Real Estate Registration Act, an application for registration of a trust must be filed simultaneously with the application for registration of the creation, transfer, or modification of rights regarding the trust property, consolidated into a single application information package.
Question 30Property, commercial and family registration practice
When a creditor obtains an Injunction Prohibiting Disposal (처분금지가처분) over real property and later prevails in a principal lawsuit securing an ownership transfer judgment, what happens to third-party rights registered AFTER the injunction registration?
- The creditor, when applying for ownership transfer based on the judgment, may unilaterally apply for the cancellation of intervening registrations that conflict with the secured right (가처분 이후의 제3자 명의 등기 말소신청) Correct answer.
- The third-party registrations remain fully valid and take precedence over the creditor
- All buildings on the property must be physically demolished within ten days
- The creditor must pay all debts owed by the intervening third parties
Explanation
Under Article 94 of the Real Estate Registration Act and Supreme Court registry rules, a creditor who prevails on the merits can apply for ownership transfer registration and simultaneously apply for the cancellation of all intermediate conflicting registrations recorded after the injunction registration.
Question 31Property, commercial and family registration practice
Under Article 100 and Article 101 of the Real Estate Registration Act, what is the procedure for filing an Objection (이의신청) against a registrar's disposition or rejection?
- An objection must be submitted in writing to the competent District Court through the registry office where the registrar works Correct answer.
- An oral complaint must be filed directly with the National Assembly Petitions Committee
- An objection can only be filed by hiring a private detective agency
- The applicant must file an arbitration request with the World Trade Organization
Explanation
Under Article 101 of the Real Estate Registration Act, an objection against a disposition or decision of a registrar shall be filed by submitting a written notice of objection to the competent District Court (지방법원) via the registry office (등기소) having jurisdiction.
Question 32Property, commercial and family registration practice
Under Article 2(4) and Article 50 of the Real Estate Registration Act, what is 'Registration Identification Information' (등기필정보 / formerly 등기필증)?
- Confidential alphanumeric security codes issued by the registrar to the new right-holder upon completion of registration, required to be submitted when that person later acts as a duty-holder (등기의무자) in subsequent registrations Correct answer.
- A tourist passport stamped by border immigration control
- A credit card security PIN issued by commercial banks
- An architectural building permit issued by a municipal mayor
Explanation
Article 2(4) defines 등기필정보 as information the registrar creates to identify a new right-holder recorded in the register; Article 50(1) requires the registrar to create and notify it, and Article 50(2) requires the applicant to supply the duty-holder's 등기필정보 with the application information in a joint application. It consists of a serial number and a password, so when the right-holder later sells or mortgages the property as 등기의무자 the registry can verify identity and block fraudulent conveyances.
Question 33Property, commercial and family registration practice
Under Article 75 of the Real Estate Registration Act, what mandatory information must be recorded when registering the establishment of a Root-Mortgage (근저당권설정등기)?
- The Maximum Debt Amount (채권최고액) and the debtor's full name and address Correct answer.
- The exact date the debtor will repay every single won
- The debtor's personal blood type and shoe size
- The historical price of gold on the date of contract
Explanation
Article 75(2) mandates that for a root-mortgage registration, the register must state: (1) that the right is a root-mortgage, (2) the maximum debt amount (채권최고액), and (3) the name and address of the debtor. The actual debt amount is fluctuating and not recorded.
Question 34Property, commercial and family registration practice
Under Article 37(1) of the Commercial Act (General Effect of Commercial Registration / 상업등기의 일반적 효력), what is the legal effect of matters required to be registered before they are actually registered?
- They cannot be set up against a third party acting in good faith (선의의 제3자에게 대항하지 못한다) Correct answer.
- They take full legal effect against all third parties immediately upon board approval
- They result in immediate corporate liquidation
- They can only be enforced in foreign jurisdictions
Explanation
Article 37(1) of the Commercial Act provides that matters required to be registered cannot be set up against a third party in good faith until they have been duly registered and publicly gazetted. Once registered, they can generally be asserted against third parties unless the third party had justifiable grounds for not knowing (Article 37(2)).
Question 35Property, commercial and family registration practice
Under Article 22 of the Commercial Act, what protection is conferred upon a registered commercial trade name (상호)?
- A registered trade name grants a 100-year worldwide monopoly across all business sectors
- The trade name can never be changed even if the corporation merges
- No other person may register the same trade name for the purpose of the same business within the same Special Metropolitan City, Metropolitan City, Special Self-Governing City, Si, or Gun Correct answer.
- The trade name must be displayed on national television weekly
Explanation
Article 22 of the Commercial Act protects registered trade names: no trade name registered by another person can be registered for the purpose of the same category of business within the same administrative municipal district (Special City, Metropolitan City, Si, Gun). If registered with improper purpose, it may be ordered cancelled under Article 23.
Question 36Property, commercial and family registration practice
Under Article 526 and Article 528 of the Commercial Act, when does a Corporate Merger (회사합병) take legal effect?
- Immediately when the two CEOs shake hands at a press conference
- When the merger agreement is signed by corporate legal counsel
- When the merger registration is completed at the seat of the principal office of the surviving company or newly formed company (합병등기를 한 때에 효력이 생긴다) Correct answer.
- Upon completion of creditor objection notices, even before registration
Explanation
Under Article 528 of the Commercial Act, a corporate merger takes effect when the surviving company completes the registration of modification (변경등기) or the newly incorporated company completes the registration of incorporation (설립등기). Completion of registration is the legal constitutive moment of merger.
Question 37Property, commercial and family registration practice
Under the Non-Contentious Case Procedure Act (비송사건절차법), what is the core procedural principle that distinguishes non-contentious proceedings from adversarial civil litigation?
- Strict adversarial party presentation principle (변론주의) with mandatory public hearings
- Mandatory jury trials composed of twelve random registered voters
- The Inquisitorial Investigation Principle (직권탐지주의): the court is not bound by parties' claims or evidence and may ex officio investigate facts and take evidence on its own authority Correct answer.
- Proceedings must be conducted entirely in sign language
Explanation
Under Article 11 of the Non-Contentious Case Procedure Act, non-contentious cases are governed by the Ex Officio Inquisitorial Principle (직권탐지주의). Unlike civil lawsuits bound by party presentation (변론주의), non-contentious judges may investigate facts and examine evidence on their own initiative to safeguard the public interest.
Question 38Property, commercial and family registration practice
Under the Non-Contentious Case Procedure Act and the Commercial Act, when may a court appoint a liquidator (청산인 선임) for a dissolving stock company upon application by an interested party?
- Whenever the company's annual revenue exceeds KRW 1,000,000,000
- Only when the company's head office is located in a foreign country
- When there is no person to become a liquidator pursuant to statutory default rules or the Articles of Incorporation, or when an appointed liquidator has died, resigned, or is otherwise unable to perform duties Correct answer.
- Whenever the liquidator refuses to wear formal business attire
Explanation
Under Article 531(2) of the Commercial Act and provisions of the Non-Contentious Case Procedure Act, where there is no statutory liquidator (default directors), no liquidator designated by the articles of incorporation or general meeting, or when a vacancy arises, the court shall appoint a liquidator upon application by an interested party (e.g. creditors or shareholders).
Question 39Property, commercial and family registration practice
Under Article 287-7 of the Commercial Act and the surrounding provisions on the 유한책임회사, what is a defining characteristic of a Limited Liability Company regarding member liability and management structure?
- All members bear unlimited joint and several personal liability for all corporate debts
- The company is legally prohibited from generating commercial profits
- Each member's liability is limited to the amount of their capital contribution (간접·유한책임), while internal governance and profit distribution can be flexibly determined by the Articles of Incorporation without mandatory statutory boards Correct answer.
- A limited liability company must have at least 500 individual shareholders
Explanation
Introduced by the 2011 Commercial Act amendment (modelled on the US LLC), the 유한책임회사 combines the limited liability of stock company shareholders with the flexible, contractual internal governance of partnerships (인적 회사). Article 287-7 caps each member's liability at the amount of their contribution, and the articles of incorporation govern who manages the company and how profits are shared; no statutory board or auditor is required.
Question 40Property, commercial and family registration practice
In real estate registration practice, how is a 'Registration of Correction' (경정등기) distinguished from a 'Registration of Alteration' (변경등기)?
- Registration of correction fixes a clerical error or omission that existed at the time of the initial registration (원시적 착오·유루), whereas registration of alteration reflects changes in factual or legal circumstances that occurred after the registration was completed (후발적 사유) Correct answer.
- Registration of correction applies exclusively to corporate mergers
- Registration of alteration requires approval from the President of the Republic
- There is no distinction; they are interchangeable colloquial synonyms
Explanation
Under the Real Estate Registration Act, Registration of Correction (경정등기) cures an initial defect, clerical error, or omission that was present at the very moment the registration was made (원시적 불일치), preserving identity. Registration of Alteration (변경등기) reflects a subsequent change that occurred after the registration was cleanly completed (후발적 불일치, e.g. change of owner's address or name).
Question 41Property, commercial and family registration practice
Under the Real Estate Registration Act, when a mortgagor completely repays all debts secured by a registered mortgage, what is the proper application procedure to remove the mortgage entry from the register?
- The mortgagor may tear out the page from the registry book at the courthouse
- The mortgage automatically disappears from public computer databases without any application
- The mortgagor (등기권리자) and mortgagee (등기의무자) must jointly apply for a Registration of Cancellation (말소등기) submitting proof of debt satisfaction/release and the registration certificate Correct answer.
- The mortgagor must file a criminal complaint against the bank
Explanation
While substantive extinction occurs upon debt payment under civil accessory rules (부종성), formal public registry removal requires an application for Registration of Cancellation (말소등기). Under the Principle of Joint Application (Article 23), the mortgagor (등기권리자) and mortgagee (등기의무자) must jointly apply, accompanied by the deed of release and registration identification information.
Question 42Civil execution, provisional protection and court deposits
Under Article 24 and Article 56 of the Civil Execution Act (민사집행법), which of the following is NOT recognized as a statutory 'Executory Title' (집행권원) capable of supporting compulsory execution?
- A final and conclusive judgment rendered by a civil court (확정된 종국판결)
- A conclusive Payment Order (확정된 지급명령)
- An informal handwritten promissory note executed without notarial authentication or judicial confirmation Correct answer.
- A notarial deed prepared by a notary public containing an express submission to immediate compulsory execution (집행인가 공정증서)
Explanation
Under Article 24 and Article 56 of the Civil Execution Act, executory titles (집행권원) include final court judgments, provisional execution declarations, judicial settlement/conciliation protocols, conclusive payment orders, and notarial deeds prepared by a notary public containing a submission clause to immediate execution. An unauthenticated handwritten IOU is mere evidence and cannot serve as an executory title.
Question 43Civil execution, provisional protection and court deposits
Under Article 28 of the Civil Execution Act, what is an 'Execution Clause' (집행문), and which official generally grants it?
- A monetary tax receipt issued by the National Tax Service
- A police summons directing the debtor to report for criminal interrogation
- An official endorsement affixed to the authenticated copy of an executory title by a court clerk (or notary public) certifying that compulsory execution may be carried out by virtue of that instrument Correct answer.
- A letter of recommendation from an appellate judge
Explanation
Under Article 28 and Article 29 of the Civil Execution Act, compulsory execution is carried out on the basis of an authenticated copy of the executory title bearing an execution clause (집행문). The clause is issued and endorsed at the foot of the judgment copy by the court clerk of the court of first instance (or the notary who prepared the deed).
Question 44Civil execution, provisional protection and court deposits
Under Article 44(2) of the Civil Execution Act, what is the temporal limitation on asserting grounds of objection in a Lawsuit of Objection Against a Claim (청구이의의 소) challenging a final civil court judgment?
- The grounds of objection must have arisen AFTER the conclusion of oral pleadings in the original trial (변론종결 뒤에 생긴 것이어야 한다) Correct answer.
- The grounds of objection must have been known to the debtor before the lawsuit was ever filed
- The grounds of objection can be asserted only within twenty-four hours of judgment delivery
- There is no temporal limitation; any historical defense from childhood may be raised
Explanation
Under Article 44(2), where the executory title is a judgment, the grounds for objection (such as repayment, set-off, or release) must have arisen after the conclusion of oral pleadings (변론종결 뒤). Any defenses that existed prior to the close of pleadings are precluded by the res judicata effect (기판력) of the final judgment.
Question 45Civil execution, provisional protection and court deposits
Under Article 48 of the Civil Execution Act, when is a 'Third-Party Objection Lawsuit' (제3자이의의 소) the proper legal remedy?
- When the debtor wishes to appeal the judge's legal reasoning to the Supreme Court
- When an attorney seeks payment of unpaid legal fees from a client
- When a third party asserts ownership or another right preventing the transfer or delivery of the specific object that has been subjected to compulsory execution by a creditor Correct answer.
- When a creditor wishes to extend the statutory limitation period on a loan
Explanation
Article 48(1) of the Civil Execution Act provides that where a third party has ownership or a right that prevents the transfer or assignment of the object of compulsory execution (e.g. the creditor mistakenly seized machinery owned by a third-party lessor rather than the debtor), the third party may file a lawsuit of objection against the creditor to exclude execution.
Question 46Civil execution, provisional protection and court deposits
Under Article 83 of the Civil Execution Act, what is the legal effect of a court's Commencement Order for Real Estate Auction (부동산 강제경매개시결정)?
- It immediately demolishes the building on the real estate
- It cancels all mortgages registered on neighboring properties
- It orders the seizure (압류) of the real property, which takes effect when the decision is served on the debtor or when the registration of the commencement order is completed in the Real Estate Register, whichever occurs earlier Correct answer.
- It transfers ownership unconditionally to the municipal city government
Explanation
Under Article 83(1) and (4) of the Civil Execution Act, the court's decision to commence auction orders the seizure (압류) of the property. The seizure takes legal effect when the decision is served on the debtor or when the registration of the auction commencement decision is recorded in the register, whichever happens first.
Question 47Civil execution, provisional protection and court deposits
Under Article 227 of the Civil Execution Act, when does a court's Order of Seizure over Monetary Claims (금전채권 압류명령) take legal effect against the debtor and the third-party debtor?
- Immediately when the creditor mails the application form
- When the debtor reports the seizure to their family members
- When the seizure order is served upon the third-party debtor (제3채무자에게 송달된 때) Correct answer.
- Exactly thirty days after the judge signs the order
Explanation
Article 227(3) of the Civil Execution Act explicitly provides that an order of seizure shall become effective when it is served on the third-party debtor (제3채무자에게 송달된 때에 그 효력이 생긴다). Once served, the third-party debtor is legally prohibited from paying the debtor.
Question 48Civil execution, provisional protection and court deposits
In civil execution regarding monetary claims, how does an 'Assignment Order' (전부명령 / Article 229(3)) fundamentally differ from a 'Collection Order' (추심명령 / Article 229(2))?
- An assignment order transfers ownership of the seized claim exclusively to the municipal government
- A collection order extinguishes the debtor's entire debt automatically upon issuance
- An assignment order transfers the seized claim directly to the creditor in lieu of payment (extinguishing the underlying judgment claim to that extent), but is void if competing attachments existed prior to service; whereas a collection order merely authorizes the creditor to collect the claim without transferring title or barring competing creditors Correct answer.
- Both orders have identical procedural requirements and substantive legal effects
Explanation
An assignment order (전부명령) transfers the claim to the executing creditor as a payment substitute (대물변제적 효력), extinguishing the original debt upon becoming final. However, under Article 229(5), an assignment order is null and void if other creditors' attachments or provisional attachments arrived prior to its service. In contrast, a collection order (추심명령) grants the creditor collection power on behalf of all participating creditors without extinguishing the debt until actual recovery.
Question 49Civil execution, provisional protection and court deposits
Under Article 276 of the Civil Execution Act, what are the two core statutory requirements for the issuance of a 'Provisional Seizure' (가압류) order?
- A claim for delivery of specific real property and a formal letter of apology
- A completed commercial audit and five personal character references
- A monetary claim or a claim convertible into money (금전채권 또는 금전으로 환산할 수 있는 채권), and necessity of preservation (보전의 필요성, such as danger that execution will become impossible or difficult) Correct answer.
- A declaration of war by the National Assembly
Explanation
Under Article 276 and Article 277 of the Civil Execution Act, provisional seizure (가압류) requires: (1) a preserved claim that is monetary or convertible into money (피보전권리), and (2) grounds for preservation (보전의 필요성), showing that without provisional seizure, compulsory execution would become impossible or substantially difficult (e.g. debtor dissipating or concealing assets).
Question 50Civil execution, provisional protection and court deposits
Under Article 300 of the Civil Execution Act, how is a 'Provisional Disposition with Regard to the Subject Matter in Dispute' (다툼의 대상에 관한 가처분) distinguished from a 'Provisional Disposition Determining a Temporary State of Affairs' (임시의 지위를 정하는 가처분)?
- The former applies only to criminal cases, while the latter applies to international maritime disputes
- The former is decided by jury trial, while the latter is decided by the Chief of Police
- The former preserves the status quo of a specific property object to prevent changes in its existing condition (e.g. Injunction Prohibiting Disposal / 처분금지가처분), whereas the latter temporarily establishes legal relations between parties to avoid substantial harm or imminent violence (e.g. Injunction Suspending Director Duties / 직무집행정지가처분) Correct answer.
- They are identical terms with no procedural distinction
Explanation
Article 300 recognizes two types of provisional dispositions (가처분): (1) paragraph (1) preserves specific disputed objects (e.g. prohibition of transfer of title, prohibition of demolition), while (2) paragraph (2) regulates ongoing contentious legal relations to avert imminent danger or irreparable harm (e.g. preliminary injunction suspending a corporate director, preliminary alimony payments).