Sangcheol’s Legal Journal : YouLaw Insights

Legal Nature of Surety Insurance: Supreme Court’s Perspective Surety insurance plays a crucial role in ensuring contract fulfillment in various industries. Particularly in the construction sector and large-scale contracts, it acts as a key legal mechanism to maintain trust between parties. However, surety insurance differs from general indemnity insurance and exhibits characteristics similar to a surety contract. Existing Supreme Court Precedents on Surety Insurance Surety insurance is fundamentally a type of indemnity insurance, but it closely resembles a surety contract in essence. The Supreme Court has consistently interpreted surety insurance as follows: - Surety insurance covers the loss incurred by the insured (creditor) due to the non-performance of the policyholder (debtor). - Although formally structured as an insurance contract, it effectively functions as a surety. - The 2014 amendment to the Commercial Act (Articles 726-...

South Korea’s Civil Code Revision: Key Changes and Implications The South Korean government has introduced a major revision to the Civil Code, marking a significant legal modernization.  This reform aims to enhance clarity, align with global standards, and improve legal accessibility for both citizens and foreign residents. By addressing legal ambiguities and incorporating judicial precedents into statutory law, this revision is expected to enhance predictability in legal disputes. Key Reforms in the Civil Code Revision One of the most notable changes is the improvement of the breach of obligation system.  Previously, the Civil Code only had provisions on non-performance and delay but lacked explicit rules on partial performance.  The revised law clarifies this by defining breach as “when performance has not been completed” rather than “when performance becomes impossible.” Additionally, the scope of remedies such as restitution and periodic compensation has been expanded...