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winning case

Atlas Legal secured a KRW 53.3 million victory in an additional construction payment lawsuit involving excavation work at a construction site in Incheon.

Case Overview

Our client was a subcontractor who performed excavation and temporary facility work at a building construction site in Incheon. The excavation depth, originally contracted at 4 meters, was increased to 10.32 meters and then to 13.5 meters due to design changes. When the project owner refused to pay for the additional work, litigation became necessary.

Proving Legal Validity of Oral Contracts

The key issue was whether the orally agreed additional work could be legally recognized. Our legal team successfully proved the existence and content of the oral contract through witness examinations and handwriting analysis of the standard construction subcontract, based on the principle that construction contracts under Korean Civil Law do not require written form.

Court Appraisal for Payment Calculation

Court appraisal confirmed that excavation was performed to 13.5 meters, exceeding the 10.32 meters specified in the amended contract. The appraisal calculated additional construction costs of approximately KRW 77.98 million, with the final judgment amount determined after deducting prior payments and refunds.

Joint Liability of Contractor and Building Owner

The court recognized joint liability based on the contractor’s direct involvement in work instructions and partial payment, combined with the building owner being designated as the principal in the amended contract. This significantly enhanced our client’s ability to recover the debt.

Favorable Judgment

The Incheon District Court ordered the defendants to jointly pay approximately KRW 53.3 million plus delay damages to our client. This represents a significant victory where the full additional construction payment claim based on an oral contract was recognized.

Atlas Legal’s Expertise

Atlas Legal has extensive experience in construction payment disputes, contract disputes, and real estate litigation. We protect our clients’ rights through thorough evidence analysis and systematic litigation strategies.

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January 31, 2026

Case Analysis, winning case

Deposit Withdrawal Rights Lawsuit Victory – 6-Creditor Competition Resolved

Attoreny’s of Atlas Legal successfully analyzed a complex 6-creditor garnishment competition in a KRW 20 billion construction project, securing approximately KRW 55 million in deposit withdrawal rights for a client undergoing bankruptcy proceedings.

Case Overview

A dispute arose over subcontract payment claims following the bankruptcy of the prime contractor in a KRW 20 billion waste-to-resource facility construction project commissioned by a local government. Six creditors filed provisional seizures on the construction payment claims, prompting the project owner to deposit approximately KRW 200 million with the court. Our client faced the challenge of securing deposit withdrawal rights while bankruptcy proceedings were ongoing.

Complex Creditor Relationship Analysis

Atlas Legal meticulously examined the multi-layered contractual relationships among the prime contractor, subcontractors, and sub-subcontractors, as well as the validity of each debt assignment agreement. We precisely calculated the scope of debt extinguishment under direct payment agreements and the secured claim amounts for each creditor to clearly identify our client’s rights.

Resolution of Key Legal Issues

The opposing parties argued that the debt assignments were invalid based on assignment prohibition clauses. We successfully rebutted this by proving the assignees’ good faith. Additionally, we analyzed the timing of direct payment agreements under the Fair Subcontract Transactions Act against the debt assignment notification dates to precisely determine the scope of debt extinguishment.

Rights Protection During Bankruptcy

Despite our client being in bankruptcy proceedings, we successfully secured approximately KRW 55 million in rights through the deposit withdrawal rights confirmation lawsuit. This achievement preserves assets for the bankruptcy estate, protecting the interests of creditors.

Legal Expertise

Atlas Legal has extensive experience in construction disputes, debt recovery, and deposit-related litigation. We systematically analyze complex multi-party creditor relationships to effectively protect our clients’ rights.

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January 31, 2026

Case Analysis, winning case

Wrongful Termination in South Korea – Employee & Employer Case Analysis

Atlas Legal presents a comprehensive analysis of wrongful termination standards in South Korea, comparing employee victory and employer victory cases. This guide explains the substance-over-form principle applied by Korean courts in dismissal disputes.

Case Overview

Atlas Legal attorneys have represented both employees and employers in wrongful termination cases. In one case, an employee who submitted a resignation letter was recognized as wrongfully terminated and reinstated. In another case, despite a criminal acquittal, the dismissal was upheld as lawful by the Supreme Court.

Key Legal Issue – Substance Over Form

Under Article 23 of the Labor Standards Act, wrongful termination is determined by whether there is a “justifiable reason” for dismissal. Korean courts focus on the substantive reality of the termination rather than formal appearances such as resignation letters or criminal verdicts.

Employee Victory – Coerced Resignation

Employee A was pressured intensively for five consecutive days following new management’s arrival and submitted a resignation letter. The Supreme Court ruled that a resignation coerced by the employer’s unilateral will constitutes wrongful termination, ordering reinstatement.

Employer Victory – Hiring Irregularities

Employee B was hired at a public institution after proposing qualification criteria favorable to himself. Despite being acquitted in criminal proceedings, the Supreme Court upheld the dismissal, recognizing that B had substantially undermined the fairness of the hiring process.

Atlas Legal’s Expertise

Atlas Legal has extensive experience representing both employees and employers in wrongful termination disputes. Our practice areas include labor disputes, corporate advisory services, and white-collar criminal defense. Early response is critical in termination disputes, and we recommend prompt consultation with our legal experts.

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January 29, 2026

Counseling

Testamentary Substitute Trust and Forced Heirship in Korea

Atlas Legal has published an in-depth analysis of Korean Supreme Court rulings on the relationship between testamentary substitute trusts and forced heirship (yuryubun) claims, addressing critical issues under the Trust Act Article 36.

Analysis Overview

This comprehensive analysis examines a hypothetical case involving six apartments transferred to a specific heir through various methods, including testamentary bequests, trusts where the trustee is also the beneficiary, and trusts using third-party trust companies. The analysis determines forced heirship applicability for each of the six transfer types.

Supreme Court Case 2022Da307294

The Korean Supreme Court ruled that testamentary substitute trusts designating the trustee as the sole post-death beneficiary violate the prohibition on trustee benefit under Trust Act Article 36 and are therefore void. However, the inter vivos self-benefit trust portion may remain valid separately, with residual asset distribution issues arising upon the settlor’s death.

Forced Heirship Calculation and Return Methods

Testamentary substitute trust assets are substantially equivalent to gifts and are therefore included in the base assets for forced heirship calculation. Return in kind is the principle for forced heirship claims, and contractual provisions for monetary return in trust agreements do not bind forced heirship claimants.

Trust Design Considerations

When designing testamentary substitute trusts, the trustee and beneficiary should be separate parties, or the trustee should be one of multiple co-beneficiaries. Asset distribution should be planned within the scope that does not infringe on other heirs’ forced heirship rights, and residual beneficiary designation issues must be reviewed in advance.

Legal Expertise

Atlas Legal has accumulated substantial experience in complex trust and inheritance matters. The firm provides comprehensive legal services including validity assessment of testamentary substitute trusts, forced heirship calculation and return claims, and trust design advisory for both domestic and international clients.

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January 29, 2026

winning case

Child Custody Enforcement – Periodic Damages Secured Voluntary Compliance

Atlas Legal successfully represented a client who had been unable to receive custody of her child for over a year despite a final court judgment, securing periodic consolation damages (KRW 500,000/month) that prompted the opposing party to voluntarily comply the day after judgment.

Case Overview

Our client was designated as the parental authority holder and custodian of her child in divorce proceedings, with a judgment ordering the former spouse to hand over the child finalized in October 2023. However, the opposing party refused to comply for over a year, leaving our client completely unable to see her child.

Indirect Enforcement Procedures

Atlas Legal systematically utilized all indirect enforcement measures under the Family Litigation Act. We obtained a compliance order (November 2023), secured the maximum statutory fine of KRW 10 million (April 2024), and filed for contempt detention (July 2024). Despite these measures, the opposing party continued to refuse child handover.

Parallel Consolation Damages Strategy

Recognizing the limitations of indirect enforcement alone, we filed a parallel claim for consolation damages under Article 750 of the Civil Act. We argued that preventing the custodial parent from exercising legitimate parental and custody rights constituted a tort, and sought both lump-sum and periodic consolation damages.

Judgment Results

The court awarded KRW 15 million in lump-sum damages to our client and KRW 5 million to the child. Critically, the court recognized periodic consolation damages of KRW 500,000 per month until child handover. This structure creates cumulative financial pressure during continued non-compliance, functioning similarly to indirect enforcement.

Voluntary Compliance Achieved

The day after the consolation damages judgment was pronounced, the opposing party expressed willingness to voluntarily comply with the child handover obligation. Our client received custody of her child after over a year, and the contempt detention application was withdrawn. The periodic damages proved to be the decisive factor in securing compliance.

Atlas Legal’s Expertise

Atlas Legal supports clients in complex family matters including child custody enforcement, custody disputes, and visitation rights through a comprehensive, multi-layered approach combining compliance orders, fines, contempt detention, direct enforcement, and parallel consolation damages litigation.

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January 29, 2026

Counseling

Exclusive Supply Contract Advisory – Buyer-Focused Contract Design

Atlas Legal completed advisory services for a large-scale exclusive supply contract. The supplier’s proposed contract was comprehensively redesigned from the buyer’s perspective, establishing robust investment protection mechanisms including penalty clauses, minimum guaranteed volume provisions, deposit delay damages, and mandatory notarization requirements.

Project Overview

Our client, a recycled raw materials business operator, was entering a five-year long-term contract to exclusively purchase the entire raw material inventory held by a specific business consortium. With deposits amounting to several hundred million won, the supplier’s proposed contract lacked enforcement mechanisms for exclusivity violations and contained vague supply obligations, necessitating a complete redesign from the buyer’s perspective.

Securing Exclusivity Rights Effectiveness

We transformed the abstract “grant of exclusive rights” provision into specifically enumerated prohibited acts. The contract now explicitly prohibits third-party sales, reservations, and information disclosure, with high-value penalty clauses and immediate termination rights triggered upon violation. Critically, we specified that the penalty is “a penalty clause, not liquidated damages,” thereby securing the right to claim actual damages separately.

Minimum Guaranteed Volume and Tiered Penalties

To specify supply obligations concretely, we established a Minimum Guaranteed Volume (MGV) provision. The contract specifies minimum supply amounts within defined periods, with a tiered penalty structure that applies varying penalty rates based on actual supply volumes. This design provides the supplier with partial performance incentives while enabling strong sanctions for complete non-performance.

Deposit Protection Mechanisms

We clarified that the deposit functions as an advance payment to be sequentially offset against purchase prices, with immediate return obligations for any unoffset balance upon contract termination. Delay damages of 20% per annum apply from the day after contract execution until actual return, providing the supplier with strong incentives for prompt return. The deposit return obligation was structured to allow cumulative claims alongside penalty and compensation obligations.

Immediate Termination Rights and Mandatory Notarization

The contract provides for immediate termination without prior notice upon creditworthiness deterioration events such as bankruptcy, default, or business closure, as well as core obligation violations including exclusivity breaches and MGV shortfalls. Additionally, we mandated completion of notarization with acknowledgment of compulsory execution within 14 days of contract execution, enabling immediate enforcement without separate litigation if the supplier fails to return deposits.

Legal Expertise

Atlas Legal possesses extensive experience in corporate advisory and commercial dispute resolution. We specialize in designing contracts tailored to our clients’ positions in complex inter-business transactions including exclusive supply agreements, joint venture agreements, and shareholders’ agreements.

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