Does Korea have a class action system?

What the Law Says

South Korea’s class action system is narrowly defined and applies only to securities-related damages claims. It is governed by a special statute, not the general Civil Procedure Act.

South Korea introduced its first and only formal class action mechanism through the Act on Special Cases Concerning the Settlement of Securities-Related Disputes (commonly called the Securities-Related Class Action Act), enacted in 2004 and effective from 2005.

This law permits a representative plaintiff to file a class action on behalf of at least 50 investors who suffered losses from false disclosures, omissions, or deceptive practices related to securities offerings or trading.

The claim must involve total damages exceeding KRW 1 billion, and all claims must arise from the same unlawful act by the defendant — such as a listed company or its executives.

Only the Seoul Central District Court has jurisdiction over these cases, and plaintiffs must file within three years from when they knew (or should have known) of the damage and the responsible party.

Statutory Text

Where fifty or more persons who have sustained damage arising from the same cause file a claim for compensation against the same defendant, the court may, upon motion of the plaintiff, permit the action to proceed as a class action.

— Act on Special Cases Concerning the Settlement of Securities-Related Disputes, s. 3 — Class Action Filing

Statutory Text

The total amount of damages claimed by the class members shall be not less than one billion won.

— Act on Special Cases Concerning the Settlement of Securities-Related Disputes, s. 4 — Minimum Claim Amount

Statutory Text

A class action under this Act may be filed only with the Seoul Central District Court.

— Act on Special Cases Concerning the Settlement of Securities-Related Disputes, s. 5 — Jurisdiction

What to Do

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