Check both the payoff budget and the auction procedure
This calculator helps debtors and families facing a Korean mortgage enforcement auction reconcile one applicant’s principal, interest and enforcement costs, then estimate the additional cash needed for a planned payoff.
It is useful when considering repayment or refinancing to preserve a home, especially when paying principal alone would leave interest or actual enforcement expenses unpaid.
The result is a preparation estimate for one creditor, rather than a statutory minimum or approval of an auction stay.
Situations this page supports
- Requesting a reconciled payoff figure after receiving an auction commencement order
- Comparing family funding with the amount needed to preserve a parent’s home
- Checking the scope and covered date of a release quote for a collateral provider or third acquirer
- Identifying urgent court checks after a purchase bid or when competing auction orders exist
Before transferring funds, confirm the creditor’s settlement amount, cost reconciliation, withdrawal documentation and current court stage.
Resolve missing payment allocations, changing rates or acceleration issues in the underlying statement first.
Korea-specific rules for 2026 apply; amounts are KRW, and the tool does not establish legal entitlement or refinancing eligibility.
What the principal, interest and costs mean
Balances at the snapshot date
Principal means the unpaid balance at the snapshot date, not the original loan amount.
Accrued interest is interest already incurred through that date and still unpaid.
After a partial payment, use balances after allocation to costs, interest and principal; do not deduct the payment again.
Unpaid reconciled expenses
The full advance deposit paid for enforcement is not necessarily the amount actually spent.
Reconcile appraisal, inspection, publication and other expenses against unused deposits and refunds, then enter costs still payable.
Other payoff expenses, such as applicable release charges, must not duplicate the enforcement-cost figure.
Combined rate and interest-bearing balance
Use the applicable combined annual rate and the balance that actually accrues future interest.
Do not add an ordinary rate again to a late rate that already includes it.
The 0–100% input range and four decimal places are interface limits, not a statutory interest ceiling or approval of legality.
Evidence status and cash
Distinguish reconciled creditor figures from assumptions.
Documented balances, rate and costs require a confirmation date on or before the reference date.
Blank means unknown; zero means an entered zero amount.
Available cash excludes money already paid to the creditor.
Rate legality, Korea’s individual-debtor protection rules, debt adjustment and acceleration depend on the actual contract and applicable conditions.
This tool does not infer eligibility for interest relief or reduce the creditor statement automatically.
It provides a daily-interest budget from the figures supplied.
Payoff preparation and daily-interest formulas
Additional interest = interest-bearing balance × combined annual rate ÷ 100 × days ÷ selected year denominator
Debtor preparation = principal + accrued interest + additional interest + unpaid enforcement costs + other payoff expenses
Cash gap = max(0, selected preparation − available cash)
Days exclude the snapshot date and include the payoff date.
The same snapshot and payoff date produces zero additional days.
Choose a fixed 365-day denominator or an actual-year 365 / 366 convention; the latter splits the period at each year boundary.
Interest is summed across periods before one whole-won ceiling is applied.
These day-count and rounding choices are budget assumptions that must be reconciled with the lender’s actual contract and settlement method.
One day versus a seven-day delay
The one-day reference uses the denominator for the day after the payoff date.
The seven-day increase is the difference between interest recalculated through seven days later and the original rounded total.
Multiplying an already rounded daily figure by seven can differ because of rounding or year boundaries.
These references are not added automatically to a non-debtor release quote; obtain a new quote if timing changes.
How to gather evidence and use the calculator
- Identify the auction. Check whether the commencement order concerns mortgage enforcement or compulsory execution and identify the applicant.
The procedural guidance here covers Korean real-property mortgage enforcement auctions.
- Check the court stage. Distinguish before bid, after bid, after permission but before full payment, and after full payment from actual records.
Check competing auction orders separately from attachments.
- Reconcile the statement. Verify the snapshot date, interest-bearing balance, combined rate, spent costs and allocated prior payments, then record evidence status and confirmation date.
Leave unknown figures blank.
- Compare timing and cash. Enter a planned payoff date and review preparation, the cash gap and delay references.
A planned date does not extend any procedural limit.
- Match role and documents. Non-debtors need an all-in release quote for the exact covered date.
Obtain creditor documentation, certified instruments and any required consents.
- Confirm receipt and processing. Use the TXT report or printout to identify omissions, then check actual court submission and receipt.
A date after the reference date remains a plan.
Family funding also requires clarity about whose debt is paid and the payer’s legal role.
Personal guarantees, debt assumption, gifts, payment by subrogation and recourse are different issues; this budget does not settle those rights.
Share the assumptions and confirmation dates along with the amounts when discussing the case with the creditor or an adviser.
Fictional example: KRW 100 million and a ten-day interval
Assume a snapshot of 2026-10-01, payoff on 2026-10-11, an interest-bearing balance of KRW 100,000,000 and a combined annual rate of 7.3%.
The rate is fictional for explaining the formula, not a statutory rate or a bank quote.
Ten days with a fixed 365-day denominator gives KRW 200,000 additional interest.
Fictional payoff preparation and cash gap for KRW 100 million principal| Item | Amount in KRW |
|---|
| Outstanding principal | 100,000,000 |
| Already accrued interest | 2,000,000 |
| Ten-day additional interest | 200,000 |
| Unpaid enforcement costs | 1,500,000 |
| Other payoff expenses | 500,000 |
| Preparation estimate | 104,200,000 |
| Available cash | 80,000,000 |
| Additional cash needed | 24,200,000 |
The applicant’s debt plus interest is KRW 102,200,000; preparation also includes unpaid enforcement costs and other payoff expenses.
With unchanged balances and rate, the one-day reference is KRW 20,000 and the seven-day increase is KRW 140,000.
Before actual payment, confirm settlement date and receipt time, new costs, and any changed rate or balance.
Why non-debtors need a separate all-in release quote
Civil Act Article 364 addresses payment and mortgage extinction by a third acquirer of ownership, superficies or a registered leasehold in mortgaged property.
Supreme Court 2005Da17341, decided 2006-01-26, explains payment of crystallized secured debt within the registered maximum, while excluding a junior mortgagee from that Article 364 category.
The payer’s role, debt crystallization, secured scope and execution costs must be checked before assuming the registered maximum is sufficient.
The quote replaces the full-debt scenario
Entering a mortgage maximum of KRW 80,000,000 does not automatically reduce the full debt to that figure.
If an all-in quote of KRW 90,000,000 has been reviewed for the non-debtor’s role, secured scope and enforcement costs and covers the exact payoff date, that KRW 90,000,000 is the selected preparation amount.
With KRW 80,000,000 cash, the gap is KRW 10,000,000.
The full principal-and-interest total and costs are not added a second time.
This example explains why the interface does not truncate a reviewed quote at the registered maximum; it does not decide that costs above that maximum are payable in every case.
A missing scope review or a covered date different from the payoff date withholds the selected amount.
Third-party collateral providers likewise use a separate reviewed total; personal guarantees, personal liability and recourse are not decided here.
Releasing one property and extinguishing the original debtor’s entire debt can have different consequences.
Withdrawal consent after a bid and the full-payment boundary
Before a purchase bid
The buyer-consent trigger in Civil Execution Act Article 93(2) has not yet occurred.
Payment by the debtor alone still does not establish withdrawal.
Confirm the creditor’s withdrawal documentation and court processing.
After a bid or sale permission
Withdrawal requires attention to consent from the highest bidder or buyer and the next-highest bidder under Article 114, where one exists.
Article 268 applies the relevant provisions to mortgage enforcement auctions.
Distinguish withdrawal of an application from separate document-based stay or cancellation under Article 266.
After the buyer pays in full
Article 135 provides for acquisition when the buyer fully pays the sale price.
The calculator then withholds a selected amount for preventing the sale.
Review post-payment distribution under Rules 50 and 194 and any separate remedies for the actual case.
The planned payoff date is not a statutory final filing deadline.
Do not infer spare time from an auction date or payment schedule alone; verify bids, consent, valid court receipt and actual full-payment time.
An unconfirmed current stage withholds the selected budget and document effect even when some money figures are entered.
Does a payoff confirmation automatically cancel the auction?
Civil Execution Act Article 266 distinguishes a stay from cancellation of steps already taken according to the documents submitted to the auction court.
A transfer receipt or calculator result is not automatically treated as a qualifying document.
Confirm the correct document category with the court.
Ordinary creditor letter
Article 266(1)(4) covers creditor documents recording non-enforcement, withdrawal, receipt of payment or consent to defer payment.
This category concerns a stay; an ordinary private letter alone does not establish cancellation under paragraph (2).
Certified instruments and proof for cancellation
Paragraph (2) addresses the cancellation proof or final-judgment documents in items (1)–(3), and an item (4) document in the form of a certified settlement record or notarial instrument.
Verify certification, finality and the actual terms.
Temporary stay order
For an item (5) court order, review its terms and paragraph (2) treatment of cancellation or temporary maintenance of steps already taken.
Temporary suspension is not debt forgiveness or permanent cancellation.
Actual court submission
Obtaining a document differs from valid court receipt and processing.
A submission date after the reference date is shown as planned.
Check the receipt and live case status as the final step.
Check competing auctions separately from attachments
Civil Execution Act Article 87(2) provides for continuation under a later auction commencement order after the earlier application is withdrawn or its proceedings cancelled.
Paragraph (4) addresses continuation on application under qualifying later orders while the earlier proceedings are stayed.
Funding one applicant’s payoff therefore does not establish that the entire property auction ends.
Record these checks separately
- Another auction commencement order: confirm the later applicant, case status and possible continuation with the court.
- Other attachments or provisional attachments: review those rights and later enforcement risk without treating attachment alone as another auction order.
- The scope of the amount: this is one applicant’s budget; payments and release costs for other creditors are separate.
Keep the competing-order field unconfirmed when you do not know and retain court review on the checklist.
Resolving several creditors requires separate balance statements and release conditions.
Assuming one figure includes every case can leave both a cash gap and unresolved proceedings.
Compare payoff funding with a remaining-debt sale scenario
The optional comparison is a simplified debtor scenario, not a distribution schedule.
The model multiplies appraisal by an assumed sale ratio, floors the price to whole won, then deducts all sale / enforcement costs and the entered prior claims.
It compares remaining proceeds with the applicant’s principal and interest to show a model remaining claim.
Fictional sale price of KRW 120,000,000
Appraisal KRW 200,000,000 × assumed sale ratio 60% = KRW 120,000,000.
Subtracting all sale costs of KRW 5,000,000 and prior claims of KRW 30,000,000 leaves model available proceeds of KRW 85,000,000.
Compared with applicant debt plus interest of KRW 102,200,000, the model remaining debtor claim is KRW 17,200,000.
The enforcement costs in the KRW 104,200,000 payoff budget are not deducted again.
Junior creditors, taxes, tenant rights, distribution demands and actual expense settlement can change the owner’s actual receipt even if the model shows a surplus.
The remaining claim is not presented as a non-debtor’s personal debt; the comparison is withheld without debtor role, complete inputs and reviewed assumptions.
The tool does not determine discharge, refinancing approval or which option is better.
Use the auction distribution and recovery calculator for a separate priority-based analysis.
Frequently asked questions
Is overdue principal alone enough to prevent the auction?
Confirm outstanding interest, costs, secured scope and the creditor’s payoff conditions together.
Paying principal alone is not treated as complete settlement, and documents and court processing remain separate checks.
Is an ordinary payoff letter the same as cancellation?
No.
Distinguish a stay involving an ordinary creditor document under Article 266(1)(4) from cancellation documents under paragraph (2).
Confirm the court’s review, receipt and processing.
Can I pay only the registered mortgage maximum?
Full debtor liability and a non-debtor’s secured liability can differ.
Role, crystallization, secured scope and execution costs require review before the maximum can be used.
Non-debtors use an all-in reviewed release quote here.
Can the creditor simply withdraw after a successful bid?
Review consent under Article 93(2) after a bid.
Separate Article 266 remedies apply to their own document categories, and full payment introduces acquisition and distribution issues requiring individual review.
Will a transfer or deposit receipt automatically stop proceedings?
Valid payment or deposit and a qualifying Article 266 document are separate questions.
Review the recipient, deposit conditions, document form and court receipt for the case; no automatic stay is shown.
Should I enter zero when a figure is unknown?
Leave it blank.
Zero states that no amount applies; entering zero for unknown expenses can understate preparation.
Evidence status and confirmation dates help distinguish missing information.
Are competing auctions the same as provisional attachments?
No.
Check a later auction commencement order separately from attachment rights.
With another order, proceedings can continue even after payment to and withdrawal by the earlier applicant.
Can I apply this to compulsory auctions or another year?
Compulsory execution requires the separate Articles 49 and 50 framework.
This tool focuses on mortgage enforcement and flags payoff dates outside 2026 for legal rechecking.
Do not extend arithmetic scenarios into legal effects for other years or special cases.
Official sources, rule dates and next actions
Current statutes and the cited judgment were checked directly through the National Law Information OPEN API on 2026-10-20.
Civil Execution Act MST268837 took effect on 2026-02-01, Civil Execution Rules MST272631 on 2025-07-12, and Civil Act MST284415 on 2026-03-17.
The review covered Civil Execution Act Articles 49, 50, 53, 87, 93, 135, 265, 266 and 268; Rules 50 and 194; and Civil Act Articles 357, 360, 364 and 479.
Supreme Court 2005Da17341 is API precedent 84274, decided 2006-01-26.
Recheck the actual balances, lawful rate, payment allocations, expense reconciliation and refunds; the covered date of release quotes; bids, full-payment time and consent; competing auction orders; and court receipt and processing.
New statutes, judgments or contract changes require another review.
This Korea-based planning guide is not legal advice and does not replace the creditor’s settlement or a court decision.
Save the review, then confirm with creditor and court
Check evidence status above and save the TXT report or printout with the missing items.
Use the checklist for payoff and withdrawal documents, required consents and execution-court receipt so that the procedural steps accompany the budget.
If a partial payment has not been allocated, review the partial-payment appropriation ledger first.