Notarization

The term “Notarization” is a quite uncommon or unfamiliar word. However, notarization system provides many advantages, such as convenience and practicality, in our lives. The notarization system in Korea dates back to early 19th century that witnessed enactment of the Joseon Notarization Ordinance(Ordinance No. 13) in March 17, 1913 and its promulgation and enforcement from May 01 of the same year, creating the nation’s first-ever full-fledged professional notarization system.

The present Notary Public Act was enacted and promulgated by Law No. 723 on September 23, 1961. In 1970, the [Act on Special Cases concerning the Settlement of Civil Disputes by Summary Proceedings] was enacted and promulgated, bringing a sea change to the notarization system. On December 31, 1982, Attorneys-at-Law Act was wholly amended by Law No. 3594, allowing the attorneys to establish law firms to practice the laws systematically and professionally. Since then, the functions of notary public have been covered by law firms’ practice areas to date.

HANBYOL LAW, LLC has the Notarization Department guiding the clients kindly through the processes of notarization to help increase their familiarity with ‘notarization system’ which has been utilized for about 9 decades in everyday lives.

Information on Notarization System

Law firms perform the functions of notary public(Article 49 of the Attorneys-at-Law Act).

Notarization has the preventive judicial functions that preclude disputes between parties based on evidences assuring the genuineness and authenticity of transactions through drafting and authentication of documents and furthermore facilitates exercise of rights by the bearers of rights and resolution of disputes in expeditious and precise manners. For that reason, notarization, which is also part of the State functions, is taking on an increased importance. Notary public performs a vast array of functions, including drafting of notarial deeds, authentication of deed signed by a private person, authentication of minutes of meeting, Articles of Incorporation, grant of definite date, drafting of protest, etc. Particularly, notary public carries out even the functions of fact confirmation based on precision, credibility and authority, as well as legal judgment, as illustrated by some instances where notary public issues the writ of compulsory execution which has the same effect as sentencing.

Therefore, the notarization system provides a broad array of advantages, such as time and cost-saving, greater efficiency due to devolution of the State functions, as well as preservation of rights. However, notarization system has yet to take firm root in our society as a result of lack of promotions and understanding. Here, we introduce some key points of notarization briefly to those visiting our website.

1. Assurance of Authenticity

Any action that damages the authenticity constitutes a crime and is subject to severe punishment. The procedures for drafting notarial deeds are strictly regulated by the Notary Public Act. So, any inclusion of false or altered information in notarial deeds constitutes crime of false entries in authentic deeds, crime of falsification of public documents, crime of fabrication and falsification of public documents, etc., and is subject to severe punishment under Criminal Act. Therefore, notarial deeds give assurance of authenticity.

2. Powerful Evidence Preservation & Easy Retention

Notarial deeds serve as powerful legal evidence, precluding disputes between parties in the period ahead. Therefore, notarial deeds maintain powerful effect throughout all official procedures. Hence, notarial deeds facilitate the exercise of rights by the bearers of rights, as well as retention of evidences as proof of authenticity for important transactions and prevention of crimes or disputes.

In addition, notarial deeds are required to be kept within the office of notary public for certain period(for 5 years on short-term and for 30 years on long-term, as prescribed in Article 5 of the Notarized Documentation Preservation Rule) pursuant to the Notarized Documentation Preservation Rule. Therefore, notarial deeds provide powerful means of retaining evidences in a whole range of proceedings, including civil proceedings, which may occur later, and eliminates the concern about loss of or damage to evidences.

3. Quick and Simple Exercise of Rights

Notarial deed, drafted in regard to claim for certain receivables or certain quantity of substitutes or securities, can be immediately executed compulsorily against obligor, if it states the obligor’s consent to compulsory execution, without judicial proceedings(Subparagraph 4, Article 56 of Civil Execution Act), enabling expeditious, simple, and efficient exercise of rights(pecuniary expenditure loan, promissory notes, etc.).

4. Cost-Saving

Judicial proceedings require professional assistance and are time-consuming and costly. By contrast, notarization procedure is expeditious, simple, and far less costly(Article 7 of Notary Public Act, Rule of Notary Public Commission).

Types of Notarization

Notarial deeds with power to enable compulsory execution : Promissory note, pecuniary expenditure loan contract, debt servicing contract, contract on pecuniary expenditure loan secured against movable properties(receivable), divorce by mutual consent, testament, cancellation of real estate transaction(donation) contracts, etc.

1. Notarization of Promissory Notes

The writ of execution can be granted by notarization office in the event of any delay in obligor’s performance of obligations. Any assets of obligor can be subject to execution except the claims for interest and overdue charges. Monthly installment not allowed.

Due date(at sight: payment of certain amount immediately upon being presented with creditor’s documents; For notarization, due date should be preceded by the date of notarization) Promissory notes should be affixed with seal at the delegation of the performance of obligor(issuer). The validity period of promissory note is 3 years after the due date. The write of execution can be granted only 7 days after the date of notarization.

2. Notarization of Pecuniary Expenditure Loan Contract

Write of execution can be granted by notarization office after the due date. Any assets of obligor are subject to execution. Claim can be made for interest and overdue charge at an annual rate not exceeding 25%. Contract on repayment by monthly installment is allowed. The term of pecuniary expenditure loan contract is 10 years after the due date. Acceleration clause can be included in case of delay in the payment of interest or monthly installment.

3. Notarization of Contract on Pecuniary Expenditure Loan for High-Priced Machinery or Goods Secured Against Movable Properties

The list of concerned machinery and goods need to be prepared in advance. The notarization provides the effect of acquisition by occupancy when preliminary execution is requested(not at the time of notarization). Obligor’s arbitrary disposition of secured goods constitutes a crime under the Criminal Act. Under the compulsory execution, the amount of receivables, not the secured goods, is given to creditor after realization of the amount of secured goods sold at auction. Other matters are same as aforesaid pecuniary expenditure loan contract.

4. Probate of Will Testament

For probate of will testament, the nuncupative testament is received by a notary public, who dictates the testament and read to the testator as it is dictated, in the presence of 2 witnesses at the place where the will is executed. The signatures or seals of testator and witnesses are affixed to the deed of probate upon confirmation of correctness of testament. The probate of will testament can be filed with the court after the death of testator without the hassle of complex probation procedure, and is used by many people for its advantages of great convenience and low cost. Moreover, the probate of will testament is kept at the office of notary public for a long period of time, eliminating the concern about loss or theft.

5. Notarization of Divorce by Mutual Consent

Married couples can dissolve marriage by the court. However, the spouse can exercise his or her right to make claim for division of property within 2 years after divorce. Hence, notarization of agreement on alimony, child support, and division of marital property can prevent disputes between the parties in mutual consent-based divorce.

Authentication of deed signed by a private person, which provides only evidence power : ‘Authentication of deed signed by a private person’ means that notary public verifies the authenticity of private documents affixed with signatures or seals of individuals, such as various contracts, agreements, confirmation of fact, statement, memorandum, articles of incorporation, minutes of meeting of general meeting of shareholders(board of directors meeting), translations, documents written in foreign languages, invitation letters, reference letter and others. Deed signed by a private person does not have the power enabling compulsory execution, unlike notarial deeds, but serves as powerful evidence. Hence, it can be used to authorize compulsory execution of performance of concerned party’s obligations indirectly and to present important evidence in case of dispute.

1. Authentication of Bond of Debt, Memorandum of Payment, and Cash Receipt

Only the effect of powerful evidence is provided. The power of compulsory execution is not granted in the event of delay in payment. Obligor's assets can be subject to compulsory execution only after sentencing or decision is issued by court upon litigation.

2. Notarization of Lease Deposit

Notarization of the contract on assignment and assumption of receivables enables the claims for lease deposit at notarization. However, assignee can make claim to lessor for return of lease deposit only after the expiry of lease contract. The lease contract needs to be brought to the office of notary public. Lessee has to serve the notice of transfer to Lessor by contents-certified mail. The assignment and assumption take effect upon lessor's receipt of the notice of transfer, while the notarial deed of the contract on assignment and assumption does not enable compulsory execution. If you want a document that grants the power for compulsory execution, the notarial deed of the pecuniary expenditure loan secured against the receivables is required.

3. Authentication of the Articles of Incorporation & Minutes of Meeting

Corporations, including joint-stock companies, are required to have their articles of incorporation notarized in accordance with the Commercial Act, as well as the minutes of meetings required in corporate registration process. The notarization aims at the authentication by notary public, giving assurance that they were drafted according to legitimate processes.

4. Authentication of Translations and Documents Written in Foreign Languages

Domestic documents are often requested by foreign countries in case of sending children abroad to study, immigration, or formation of company abroad. Documents written in Korean need to be translated into foreign languages and notarized, if they are to be accepted abroad. In the same way, documents written in foreign languages need to be translated into Korean and notarized when they are submitted to domestic organizations. When children are sent abroad to study, transcript, certificate of graduation, certificate of enrollment, etc., should be notarized. However, documents, such as consent to studying abroad, parental consent, financial affidavit, custodian appointment letter, etc., should be drafted in English, affixed with signatures of relevant parties and notarized. Authentication of deed in English and signed by a private person, such as power of attorney or contract written in English, should be directly entrusted or otherwise delegated to representatives, if they are to be notarized.

Seal Affixed to Definite Date

This system aims to prove that a document existed on the date on which notary public stamped the date on the document. In case of establishment of pledge right or transfer of receivables, the opposing power can be assured based on definite date. In lease contract, the definite date should be always stamped on the contract in order to ensure preferential claim for lease deposit.

Grant of the Write of Execution

Under the execution writ grant system, the writ of execution can be issued by notary public for immediate compulsory execution of obligor's assets without judicial process upon request of creditor for the writ. The original of notarial deed should be always brought to the office of notary public when the writ of execution is requested. As for the notarial deed containing the statement of consent to compulsory execution, the write of execution can be granted 7 days after drafting of notarial deed even if the due date of payment has been exceeded.

Required Documents & Methods

1. Individual

① Direct Attendance: ID card, stamp
② Attendance by Representative: Personal seal imprint, personal seal certificate, ID card and seal of representative

2. Corporation

① Attendance by CEO: ID card of CEO, corporate seal certificate, corporate seal
② Attendance by Representative: corporate seal affixation to the power of attorney for notarization, corporate seal certificate, ID card and seal of representative
◈ The official seal in use should be submitted when the registered seal is affixed. [purpose: for notarization]

3. Notarization of Meeting Minutes(in case of authentication of hearing, attendance by representative)

• 1) For Incorporation
• ① 2 sets of the articles of incorporation (entrustment of all promoters)
• ② 2 sets of the minutes of inaugural meeting (concurrence of two-thirds or more of total number of shares issued)
• ③ 2 sets of the minutes of the board of directors meeting (concurrence of more than half of total number of directors)
• ④ Delegation of shareholders and chairmen, and all attending executives above aforesaid quorum(personal seal affixation to the power of attorney for notarization, plus personal seal certificate; 1 set each)
• ⑤ Letter of confirmation
• ⑥ Affidavit
• ⑦ Register of shareholders
• ⑧ ID card and seal of representative
  ◈ All documents should be affixed with corporate seal which will be used for registration and application(except for affidavits)

• 2) Authentication of Minutes of General Meeting of Shareholders after Incorporation
• ① 2 sets of minutes of general meeting of shareholders
• ② Delegation of shareholders and chairmen, and all attending executives above required quorum by agenda (corporate and personal seal affixation to the power of attorney for notarization, plus corporate and personal seal certificate; 1 set each)
• ③ Letter of Confirmation
• ④ Affidavits
• ⑤ Register of shareholders
• ⑥ Certificate of all matters of corporate register (for the purpose of submission)
• ⑦ Copy of articles of incorporation (affixed with corporate seal and stamp between pages after verification of the original)
• ⑧ Notice of convocation of general meeting of shareholders(to be prepared as prescribed by the Commercial Act or articles of incorporation)
• ⑨ ID card and seal of representative

◈ In the case of co-CEO, the corporate seal certificate of each CEO and corporate seal imprint are required.

◈ All seal certificates and certificates of all matters of corporate register remain valid for 3months or lessfrom the date of their notarization.

Documents Required for Entrustment of Probate of Will Testament

◈ Probate of will testament obviates the need for probation procedure after death of testator and enables registration of inheritance immediately after the testator passed away.

1. Testator

Certificate of family relations, copy of resident registration

2. Beneficiary

Copy of resident registration

3. Executor of will testament

Basic certificate(specific), copy of resident registration, certificate of family relations
◈ Grounds for Disqualification of Executor of Will Testament
① Person with limited capacity
② Person who was declared bankrupt

4. 2 Witnesses

Basic certificate(specific), copy of resident registration, certificate of family relations, 1 set each
◈ Grounds for Disqualification of Witness
① Minor(person under age)
② incompetent, quasi-incompetent person
③ Those who will benefit from will testament, their spouses and lineal relative by blood
◈ Witnesses have no reason to feel pressure because they simply participate to witness the execution of the document and are not guarantors.Friends or neighbors, who do not have any kinship or interest with testator and beneficiary, are desirable witnesses. As they are required to visit the office of notary public, it is even better to select those who have time on their side as witnesses.

5. Required Documents for the Assets to Be Bequeathed

1 set of the certificate of all matters of land and building register – for the purpose of submission Land register, building register
Document for confirmation of appraised value of land, such as confirmation of individual housing/apartment prices
Parcels-register for forest area, portfolio of securities, banknote, lease contract, etc.
◈ Concerned documents should be prepared directly and all documents should be original.
【Only the documents notarized less than 1 month ago can be accepted. Copies are rejected.】

Notarization Charges

1. Charges for authentication of deed signed by a private person

Amount(bilateral)(KRW)	Charge(KRW)	Amount(KRW)	Charge(KRW)
20million	40,750	20million	25,750
30million	55,750	30million	33,250
35million	63,230	40million	40,750
40million	70,750	50million	48,250
40million	78,250	60million	55,750
50million	85,750	70million	63,250
60million	100,750	80million	70,750
70million	115,750	90million	78,250
80million	130,750	100million	85,750
90million	145,750	100million	123,250
100million	160,750	200million	160,750
100million	235,750	300million	235,750
200million	310,750	400million	310,750
200million	385,750	500million	385,750
300million	460,750	600million	460,750
300million or more	500,000	600million or more	500,000
Accurate charges are calculated based on documents at the notarization office.

- Basic charge for the unilateral: KRW 25,750 / Basic charge for the bilateral: KRW 40,750
- Aforesaid Table of the Charges is based on documents in Korean. Charges twice the amount of aforesaid charges apply to documents in English.

2. Charges for authentication of miscellaneous deeds signed by a private person

Authentication of Certificate of Incorporation	KRW 80,000 for up to KRW 50 million in total par value of shares issued	Ceiling
	For total par value of shares which exceeds KRW 50 million, 1/2,000 of each excess amount is charged additionally	KRW 1 million
Authentication of Corporate Minutes of Meetings	KRW 30,000 per case
Affidavits and Confirmation of Facts	KRW 12,500 per case
Invitation Letter	For 5 or less invitees - KRW 12,500 For more than 5 invitees - KRW 1,000 is charged additionally for each excess invitee
	Power of Attorney(for Litigation)
Power of Attorney(for Litigation)	KRW 3,000
Translations	KRW 25,000 per case for both Korean and English versions
Authentication of Deeds Signed by Private Person	KRW 12,500 per case
View of Original	KRW 1,000 per case
Copy of Original	KRW 500 per sheet of paper
Definite Date	KRW 1,000 per case

3. Charges for notarial deeds

Amount(bilateral) (notarial deed of pecuniary expenditure loan contract(KRW)	Charges(KRW)	Amount(unilateral) (notarial deed of promissory note) (KRW)	Charges(KRW)
2million	22,000	2million	11,000
5million	33,000	5million	22,000
10million	51,500	10million	33,000
15million	66,500	15million	44,000
20million	81,500	20million	51,500
30million	111,500	30million	66,500
40million	141,500	40million	81,500
50million	171,500	50million	96,500
60million	201,500	60million	111,500
70million	231,500	70million	126,500
80million	261,500	80million	141,500
90million	291,500	90million	156,500
100million	321,500	100million	171,500
100million	471,500	200million	321,500
200million	621,500	300million	471,500
200million	771,500	400million	621,500
300million	921,500	500million	771,500
300million	1,071,500	600million	921,500
400million	1,221,500	700million	1,071,500
400million	1,371,500	800million	1,221,500
500million	1,521,500	900million	1,371,500
600million	1,821,500	1billion	1,521,500
700million	2,121,500	1.3billion	1,971,500
800million	2,421,500	1.5billion	2,271,500
900million	2,721,500	1.8billion	2,721,500
1billion or more(ceiling)	3,000,000	2billion or more(ceiling)	3,000,000
Additional Charges
Charges for original, copy	KRW 3,000 for each	Charges for original, copy	KRW 2,500 each
Charge for notification	KRW 3,000 per person	Charge for notification	KRW 3,000 per person
Charges are calculated based on the amount of loan and assets to be bequeathed. (excluding the interest and damages for delay)
If you cancel your previous notarization, the charge equal to 1/2 of current notarization charges will apply.