South Korean courts pilot 'livelihood divisions' to speed up civil cases

Courts in Seoul and Changwon are piloting specialized divisions to speed up civil cases involving ordinary citizens, aiming to help them return to their livelihoods faster. The "prompt processing divisions for livelihood cases" were established on February 23 and handle cases like rental deposit disputes, fraud, and small business claims.

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The defendant (landlord) stated they would legally contest this, but has not appeared in court today, so we will conclude the proceedings and issue a sentence. Order. The defendant shall pay the plaintiff (tenant) 150 million won and delayed damages at an annual interest rate of 5%.

One tenant, identified as Park, faced a lengthy battle to reclaim a 150 million won deposit after her landlord refused to return it for over a year and a half. She had to commute four hours round trip from her new job in Incheon to her old apartment in Seoul while still paying rent and loan interest. Her plans to open a small piano academy were also stalled.

Park filed a lawsuit in April, and the court ruled in her favor just 76 days later. The landlord, who had only submitted a formal but unsubstantiated defense, did not appear in court. The judge deemed the landlord's claims as admitted, leading to an immediate ruling.

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I did not expect it to end so quickly, as a lawyer told me it would take several hearings. I am happy to receive the sentence in the first hearing.

These specialized divisions aim to resolve cases quickly, with a target of scheduling the first hearing within five weeks of filing. They utilize methods like immediate sentencing after closing arguments, a practice less common in other civil cases. The average time from filing to the first hearing is 87 days, significantly faster than the national average of 139 days. The total time from filing to judgment is 91 days, compared to the national average of 223 days.

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In general, it takes months for a mediation date to be set after a mediation referral, but in the livelihood divisions, a date can be set the very next day. It's like a 'fast track'.

Mediation is also a key component, with dedicated mediators facilitating quicker resolutions. The settlement rate in these divisions is 42.2%, higher than the national average of 25.8%. The rate of appeals against judgments is also lower, at 12.3% compared to the national average of 23.1%. The Ministry of Court Administration plans to evaluate the pilot program by year-end and consider expanding it to other courts.

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Because both parties have sufficient time to express their opinions during the mediation stage, even if mediation is not established, there are fewer appeals against the judgment.