Korea Legal Interest Calculator: Civil, Commercial & Litigation Rate
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OIYO EditorialContributor
Korea Legal Interest Calculator
Use this when no interest rate is specified in a contract, or when calculating delay damages in a legal dispute.
Korea’s Statutory Interest Rates
| Category | Rate | Legal Basis |
|---|---|---|
| Civil statutory rate | 5% per annum | Civil Act Article 379 |
| Commercial statutory rate | 6% per annum | Commercial Act Article 54 |
| Litigation special rate | 12% per annum | Special Act on Promotion of Litigation, Article 3 |
Which rate applies when?
- Civil: Loans between individuals, unjust enrichment repayment, etc.
- Commercial: Transactions between business entities, commercial debt/credit
- Litigation special: Delay interest on amounts unpaid after a court judgment (12% since June 2019)
Calculation method: Simple interest, based on 365 days per year. Actual outcomes in court may differ depending on judicial findings and special circumstances. For anything material, consult a licensed legal professional.
Common Scenarios
| Situation | Applicable Rate |
|---|---|
| Personal loan not repaid (individuals) | Civil 5% |
| Unpaid trade receivables (businesses) | Commercial 6% |
| Delay in payment after court judgment | Litigation special 12% |
| Unpaid wages or severance pay | Minimum civil 5% (may vary by precedent) |
| Tort damages (delay interest) | Civil 5% from incident → 12% after judgment |
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OIYO Editorial
Editorial DeskThe OIYO editorial desk researches money, law, lifestyle, and self-understanding topics against primary sources and public statistics. Every piece carries source notes and is reviewed on a regular cycle for accuracy and usefulness.