In a South Korean civil lawsuit, the losing party generally bears litigation costs, including a regulated portion of the winner’s attorney fees. That does not automatically mean paying the winner’s entire legal bill. Articles 98 and 109 of the Civil Procedure Act establish this distinction.
The practical question is therefore not simply “Who lost?” It is “What costs are recoverable, how were they allocated, and what amount has been fixed?” Your own lawyer’s invoice and the opponent’s recoverable costs need separate lines in your budget.
This guide concerns ordinary civil litigation in the Republic of Korea, including money and contract disputes. It is written for English-speaking readers, including those in the US and UK; it does not apply either country’s domestic costs rules. Criminal proceedings, arbitration, and specialized proceedings require separate analysis.
Table of Contents
Separate three amounts before assessing your exposure
When reviewing a demand or discussing a potential case, use three separate headings:
- The underlying claim: the money or other relief being contested.
- Your legal-services budget: what your engagement agreement says about fees, expenses, and payment triggers.
- Costs payable between the parties: the recoverable amount attributed to each side.
Ask your attorney to explain each figure separately. A quote for representation is not an estimate of every financial consequence of losing. Equally, a statement that costs are recoverable should not be treated as a promise that a successful case will leave you with no legal expense.
How the attorney-fee schedule changes the bill
The Ministry of Government Legislation’s guide to costs borne by a losing party, dated September 15, 2026, explains that attorney fees are calculated by court level, using the value of the litigation, within the fees paid or payable under the fee agreement. Selected scheduled amounts are:
| Litigation value | Scheduled attorney-fee amount |
|---|---|
| KRW 10 million | KRW 1 million |
| KRW 20 million | KRW 2 million |
| KRW 50 million | KRW 4.4 million |
| KRW 100 million | KRW 7.4 million |
These are schedule calculations for one court level, not market prices or guaranteed awards. The same government guide identifies additional cost categories, including filing, service, witness, and expert expenses. The table therefore does not represent total exposure.
A hypothetical KRW 50 million dispute
For this litigation value, the schedule calculation is KRW 2 million + 8% × KRW 30 million = KRW 4.4 million. Suppose the winner’s relevant attorney fee is KRW 8 million. The schedule does not simply transfer that entire invoice to the loser.
For budgeting, the illustrative gap is KRW 3.6 million: KRW 8 million minus KRW 4.4 million. This assumes full allocation against the opponent and allowance of the scheduled amount; it excludes other expenses and adjustments. Ask counsel to confirm the litigation value, applicable rules, and allocation before using the example for a real case.
Partial success and settlement change the analysis
Under Article 101, the court determines costs after partial defeat. Articles 99–100 also permit exceptions involving unnecessary acts or attributable delay. For an in-court settlement, Article 106 generally leaves each party bearing its own costs unless otherwise agreed. See the Act’s cost-allocation provisions.
If you claimed KRW 100 million but received KRW 60 million, do not build your budget around an assumed 60/40 costs split. Read the actual costs order. The amount awarded on the underlying claim and the allocation of litigation costs answer different questions.
During settlement negotiations, ask for clear wording on attorney fees, court expenses, and any pending costs application. Have counsel explain whether the proposed payment resolves all of those items. “The dispute is settled” is a poor substitute for knowing exactly which payments remain.
A costs order and a fixed amount are different steps
Article 110 provides for an application to the first-instance court to fix an unspecified costs amount once the judgment is final or the costs decision is enforceable. The application requires a costs statement and supporting documents. Article 111 provides an opportunity for the opponent to respond; Article 110 allows an immediate appeal against the determination. These procedures appear in the Civil Procedure Act, Articles 110–111.
If a demand arrives, gather the judgment, costs order, itemized calculation, supporting documents, and court notice. Check the case number, court level, amounts already paid, and the response date. Ask a Korean litigation attorney to review any disputed items promptly, especially if you cannot confidently read the Korean documents.
A useful review question is: “Can you reconcile this demand with the court’s allocation and the applicable fee calculation?” That gives the reviewer a concrete task instead of asking whether the total merely looks expensive.
What to ask before hiring counsel or appealing
Request a written estimate with separate scenarios for success, partial success, and defeat. Ask the attorney to identify:
- What the engagement covers, including whether an appeal or costs application requires a new fee.
- Whether quoted figures include VAT, translation, expert work, and other expenses.
- The estimated recoverable attorney-fee amount in each scenario and the assumptions behind it.
- How settlement would affect the client’s payment obligations under the engagement.
- For an overseas client, whether security for costs or cross-border collection needs separate assessment.
If your matter involves police questioning or criminal charges, use the separate guide to hiring a Korean criminal defense lawyer as a foreigner. Do not use this civil-costs example to estimate a criminal defense budget.
Before paying a disputed costs demand, obtain an explanation linking the amount to the order, the calculation, and the supporting evidence. Before starting a case, obtain the same explanation as an estimate. Knowing those numbers makes the decision to litigate, settle, or appeal considerably more concrete.