South KoreaWhat are the conditions for exercising a lien?
In South Korea, a lien may be exercised when a person lawfully possesses another's movable property and has a claim arising from that property, provided the claim is due and unpaid.
What the Law Says
South Korean law recognizes liens primarily under the Civil Act and the Commercial Act. A lien grants a creditor the right to retain possession of movable property until a claim related to that property is satisfied.
Under the Civil Act, a lien arises when a person lawfully possesses another's movable property and has a claim arising directly from that property — such as expenses incurred for its preservation or improvement.
The Commercial Act provides a broader commercial lien for merchants: if a merchant possesses movable property belonging to another in connection with commercial activities, they may retain it for claims arising from those activities — including service fees, transportation costs, or storage charges.
Crucially, the claim must be due and unpaid, and possession must be lawful and continuous at the time the lien is asserted. The lien does not require registration or agreement — it arises by operation of law.
Statutory TextA person who lawfully possesses another person’s movable property and has a claim arising from that property may retain the property until the claim is satisfied.
— Civil Act, Art. 354 — Right of Lien
Statutory TextA merchant who possesses another person’s movable property in connection with commercial activities may retain the property for claims arising from those activities.
— Commercial Act, Art. 472 — Commercial Lien
What to Do
Confirm you lawfully possess the debtor’s movable property (e.g., via contract, delivery, or service performance).
Verify your claim arises directly from that property or related commercial activity and is currently due and unpaid.
Notify the debtor in writing of your intent to exercise the lien, specifying the property and amount owed.
Maintain secure, undisturbed possession of the property; do not use or dispose of it without court authorization.
If the debt remains unpaid, apply to court for judicial sale of the property to satisfy the claim.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.