Compare the liquidation payment with repayment and timing
This calculator helps borrowers and families who provided a home or land as loan security compare a liquidation payment with the money and timing needed to prepare for cancellation of the security registration.
Private creditors can also organize valuation and claim details for notice and check the waiting period before ownership acquisition.
It covers private appropriation of Korean real-property security, rather than court auction distribution or the payoff needed to withdraw an auction.
Three separate results
- Liquidation payment: notice-date property value less the secured claim and applicable prior secured claims
- Liquidation period: the two-calendar-month wait after valid notice reaches the recipient
- Repayment preparation and the ten-year reference: debt through the planned repayment date and separate restrictions on cancellation
Korea-specific rules for 2026 apply; all amounts are KRW.
The liquidation-period endpoint is not automatically the endpoint of cancellation rights.
Reconcile estimates against the creditor statement, notice and registration records before taking action.
Start with the Act’s scope requirements
A loan claim and a security purpose
Check whether the arrangement secures an obligation to return money or other property borrowed under a loan for consumption.
A registration securing a purchase-price debt, an ordinary sale reservation and a title dispute are not automatically the same arrangement.
Unconfirmed loan origin or security purpose leaves the scope result withheld.
Strictly greater reservation-date value
The value when the reservation was made must exceed the borrowed principal plus the interest attached to it at that time.
With KRW 100,000,000 principal and KRW 10,000,000 reservation interest, a value equal to KRW 110,000,000 does not meet the strict excess test.
Current market value and notice-date valuation cannot replace this historical value.
An out-of-scope result means the statutory model on this page does not apply to the entered arrangement.
It does not establish that no other settlement duty exists or that the contract is valid.
Select provisional registration security or transfer security with an existing ownership transfer to distinguish the ownership-acquisition guidance under Article 4.
Separate reservation-date and notice-date figures
Principal and two interest figures
Reservation interest is the agreed total used for the scope test.
Unpaid contractual interest through maturity is the actual unpaid amount included in liquidation and repayment preparation.
Do not include interest already paid or compound interest into principal.
If principal has been partly repaid, reconcile the ledger separately rather than entering it unchanged into this single-principal model.
Valuation and prior secured claims
Notice-date property value drives the liquidation estimate and is not an automated appraisal.
Enter the actual confirmed claim secured by a prior right.
Treating every registered maximum claim amount as the actual secured balance can understate the liquidation payment.
Costs with distinct purposes
Verify recognized enforcement costs at notice and incidental repayment costs against their respective documents.
These fields do not automatically approve all legal advice or attorney fees claimed by a creditor.
Check whether a cost is already included in interest or another entered item.
Unknown is different from zero
Leave an unknown amount blank.
Zero records an entered assumption or confirmation of no interest, no cost or no prior secured claim.
Replacing missing figures with zero can distort both the amount receivable and the amount payable.
Keep fictional scenarios distinct from reconciled records.
Liquidation and cancellation repayment formulas
Delay damages = principal × annual delay rate ÷ 100 × days after maturity through the endpoint ÷ 365
Liquidation payment = max(0, notice-date value − notice-date secured claim − prior secured claims)
Notice-date secured claim = principal + unpaid interest through maturity + damages through notice + recognized enforcement costs
Cancellation repayment preparation = principal + unpaid interest through maturity + damages through repayment + incidental repayment costs
The liquidation amount uses the enforcement-notice dispatch date, while the two-month period is based on notice receipt.
Damages for liquidation run through dispatch; damages for repayment preparation run through the planned repayment date.
Do not interchange dispatch and receipt.
Fixed 365-day simple accrual and one whole-won ceiling after aggregation are comparison assumptions.
Contractual day counting, rounding, rate changes, acceleration, additional borrowing and partial repayments require separate review.
Prior debt to another creditor reduces the liquidation figure but is not added again to the repayment preparation for this creditor.
Why Civil Act Article 360 does not automatically impose a one-year cap here
Article 3(2) refers to Civil Act Article 360, but a debtor cannot assume that only one year of delay damages may always be deducted.
Supreme Court case 90Da8855 explains the restriction in relation to third parties.
This debtor-creditor comparison therefore includes all damages through notice, while leaving junior-right and third-party priority disputes for separate review.
Valid notice and a zero liquidation payment
Notice must follow maturity and state the estimated liquidation payment, property valuation and claim details at notice.
For multiple properties, the claim and costs intended to be extinguished by each transfer also require confirmation; this single-property model cannot complete that notice.
Notice dispatched before or on maturity does not produce a valid liquidation-period endpoint.
Dispatch determines the liquidation-claim amount basis; receipt determines the liquidation period.
Enter both dates separately and review returned mail, recipients and proof of actual receipt.
Zero does not remove every procedural requirement
If deductions exceed value, the model shows zero liquidation payment.
Article 3 still requires notice that no liquidation amount is payable, and the required procedure is not automatically waived.
A zero figure does not establish indefinite cancellation rights or immediately valid final registration.
Under Supreme Court case 2015Da13171, the creditor’s valuation falling short of the properly assessed amount does not alone invalidate enforcement notice.
Do not assume the clock stops while objecting to value or commissioning an appraisal; prepare repayment and liquidation responses alongside the objection.
Two calendar months are different from 60 days
Civil Act Articles 157, 159 and 160 use the day after receipt as the start and calculate by the calendar.
The period ends on the day before the corresponding date two months after that start; if the final month lacks that corresponding date, it ends on that month’s last day.
The exception for a period starting at midnight and separate contractual terms are outside this input model.
Month-end examples
Notice 2026-02-28 → start 2026-03-01 → nominal endpoint 2026-04-30.
Simply adding two months to receipt to obtain April 28 gives the wrong result.
Notice on 2026-01-30 starts on January 31 and has a nominal endpoint of 2026-03-30.
Saturdays and public holidays
The Article 161 endpoint adjustment appears separately.
The holiday table covers 2026–2027; outside that window, interpret the adjusted date as a weekend-only reference.
Temporary holidays, additional designations and later legal changes require a fresh check of the actual endpoint.
For provisional registration security, a final-registration claim may be reviewed after the liquidation period has passed.
For transfer security with an existing ownership transfer, review the post-period liquidation payment and ownership-acquisition conditions together.
Article 4(3) provides a concurrent-performance framework, so elapsed time alone does not complete delivery or ownership acquisition.
The ten-year rule, payment received and third-party acquisition
Cancellation rights under Article 11 do not automatically end when the two-month liquidation period expires.
Check separately whether the liquidation claim has been paid, ten years have passed after maturity, or a good-faith third party has acquired ownership.
Supreme Court case 2012Da47074 requires actual repayment of the entire debt within the ten-year period.
Demanding cancellation or filing only a conditional claim without full repayment does not itself preserve the right.
The nominal ten-year reference is calculated by the calendar from the day after maturity.
Maturity on 2018-02-28 gives a start of 2018-03-01 and nominal endpoint of 2028-02-29.
The tool does not rely on a directly verified precedent extending this ten-year exclusion period for holidays: prepare full repayment before the nominal reference and do not postpone it based on the adjusted reference date.
Good faith is different from the mere existence of registration in a third party’s name.
Case 2016Da248325 concerns acquisition based on final registration without knowledge of defective liquidation procedures; the circumstances and proof remain separate legal questions.
Under case 2018Da215947, expiry of cancellation rights after ten years does not itself extinguish the duty to pay liquidation money.
How to gather records and use the calculator
- Find the loan and security documents. Separate the claim’s origin, security purpose, historical reservation value and agreed interest to check scope.
- Verify maturity, dispatch and receipt evidence. Enter dispatch for the liquidation-claim calculation and actual receipt for the two-month period separately, then reconcile valuation and claim details in the notice.
- Reconcile principal, interest, costs and prior claims. Leave unknown values blank and distinguish reviewed evidence from scenario assumptions.
- Choose a repayment date. Compare notice-date liquidation with repayment on that date and check the separate two-month and ten-year references.
- Check liquidation payment and third-party rights. Do not classify unknown status as absent, and examine possible junior-right claims.
- Review the TXT report with supporting records. Confirm the full repayment amount, appraisal needs, cancellation documents and concurrent-performance arrangements with the creditor or adviser.
The example button supplies fictional values to explain the model.
An example result does not confirm your case: replace every amount and date that differs from the actual documents.
If family members fund repayment, separately review gifts, subrogation and reimbursement rights.
Worked example: KRW 138,380,000 liquidation and 112,800,000 repayment
Assume principal of KRW 100,000,000, reservation interest and unpaid interest through maturity of KRW 10,000,000 each, and reservation and notice-date values of KRW 300,000,000 each.
Use maturity 2026-01-01, both notice dispatch and receipt 2026-02-01, planned repayment 2026-04-01, a 7.3% annual delay rate, prior secured claims of KRW 50,000,000, and enforcement and repayment expenses of KRW 1,000,000 each.
Same-day dispatch and receipt assume an arrangement such as electronic notice; the legality of the actual notice method requires separate review.
The 7.3% rate is fictional and is not a statutory rate.
Notice-date liquidation compared with preparation for repayment of the same principal| Item | Notice liquidation | Planned repayment |
|---|
| Days after maturity | 31 days | 90 days |
| Delay damages | KRW 620,000 | KRW 1,800,000 |
| Principal, interest, damages and relevant costs | KRW 111,620,000 | KRW 112,800,000 |
| Prior secured claim deduction | KRW 50,000,000 | Not added |
| Liquidation / repayment preparation | KRW 138,380,000 | KRW 112,800,000 |
The nominal liquidation-period endpoint is 2026-04-01; the final-registration claim review date for provisional registration security is 2026-04-02.
Keeping dispatch at 2026-02-01 but changing receipt to 2026-02-04 leaves liquidation at KRW 138,380,000; the period instead ends nominally on Saturday 2026-04-04 and adjusts to Monday 2026-04-06.
Liquidation money and repayment preparation move in opposite directions and must not be added into a single payoff figure.
The liquidation figure does not guarantee final cash received after junior rights, attachments or set-offs.
Compare longer delay and a different property valuation
An 800-day delay
KRW 100,000,000 at an assumed 7.3% annual rate for 800 days produces KRW 16,000,000 in damages.
This debtor-creditor model does not automatically cap that amount at the one-year figure of KRW 7,300,000.
The recognized rate, accrual start and third-party priority require separate review; the example does not approve a creditor’s demand.
A KRW 20,000,000 valuation difference
Changing only the previous example’s notice valuation to KRW 280,000,000 reduces liquidation to KRW 118,380,000.
With other inputs unchanged, a valuation difference flows through to liquidation until the result reaches zero.
Changing property value alone does not alter repayment preparation of KRW 112,800,000.
This comparison does not replace appraisal or legally establish a preferred price.
Use competing evidence-based values to identify useful transaction examples, appraisal documents and right records, while preparing repayment alongside any valuation challenge.
Next steps for repayment, liquidation or a valuation objection
Preparing repayment with family support
Obtain the creditor’s all-in amount for the planned repayment date and agree funding and cancellation-document exchange arrangements.
If liquidation has already been received or good-faith third-party acquisition is involved, a transfer of money does not automatically restore the same rights.
Near the ten-year reference, seek advice on actual repayment and evidence rather than relying only on filing a case.
Receiving liquidation and settling the transfer
Confirm that valuation and deducted claims use the notice-date basis, then check junior-right claims, attachments, deposits and the actual payment route.
Review payment alongside transfer registration and delivery under the concurrent-performance framework in Article 4(3).
Creditors should not skip the liquidation period or proceed to final registration solely because a calculation is complete.
Questioning a low valuation
Gather appraisal and transaction evidence and check rates, recognized costs and actual prior secured balances.
An objection alone does not establish a suspended liquidation period.
If the case has moved to a court auction, review the auction option under Article 12 and the related auction calculators.
Rate, agreement and rights limitations
- The current 20% maximum contractual interest rate is a reference for ordinary private monetary loans; check the contract type and the new-contract or renewal application rule from 2021-07-07.
A delay-damages rate above 20% is not automatically classified as unlawful or valid, and is not reduced to 20% by the calculator: review reduction of excessive agreed damages under Interest Limitation Act Article 6.
- Article 4(4) invalidates certain terms disadvantageous to debtors, but includes an exception for agreements made after the liquidation period that do not infringe third-party rights.
The calculator does not classify every later agreement as invalid.
- The calculated liquidation payment can differ from actual receipts because of junior rights, attachments, set-offs, tax or individual settlement.
Multiple properties, shared collateral, additional loans, partial principal repayments and changing rates require a separate ledger calculation.
- The tool does not decide registration validity, proper notice recipients, the effect of a deposit, proof of bad faith, ownership or taxes.
Complete missing records and treat future notice dates or dates outside the holiday table as scenario schedules.
Frequently asked questions
Does every provisional registration fall under this Act?
No.
First check the loan claim, security purpose and whether reservation-date value exceeds the borrowed amount plus attached interest.
An out-of-scope result does not establish all other settlement duties or contract validity.
Does cancellation become unavailable after two months?
The two-month endpoint alone does not terminate Article 11 cancellation rights.
Payment of the liquidation claim, ten years after maturity and good-faith third-party acquisition require separate checks.
Distinguish the post-notice waiting period from repayment-right restrictions.
Can ownership be acquired immediately if liquidation is zero?
Review notice that no liquidation money is payable, the liquidation period and other procedural conditions.
A low entered valuation or an incorrect claim can produce zero, so the number alone does not establish ownership acquisition.
Does challenging a low valuation stop the period?
A low valuation alone does not remove the notice’s effect.
Following the approach in 2015Da13171, prepare valuation objections and repayment or liquidation responses together, while examining any independent notice defect separately.
Are delay damages always limited to one year?
A debtor cannot automatically invoke that limit in every case.
Case 90Da8855 distinguishes third-party relationships; this model uses all damages through notice.
Check junior rights and the actual secured scope separately.
Is filing a lawsuit within ten years enough?
Case 2012Da47074 explains that a cancellation demand or conditional claim without full repayment is insufficient.
Prepare actual full payment and evidence, and do not pass the nominal reference by relying on a holiday-adjusted reference date.
What if a third party holds title but liquidation is unpaid?
Check how ownership was acquired and whether good faith is established.
A name change alone is not conclusive; review knowledge of liquidation defects and proof under the principles discussed in 2016Da248325.
Does liquidation money disappear after the period or ten years?
Cancellation rights and the duty to pay liquidation money are separate.
Case 2018Da215947 explains that liquidation obligations may remain after ten years.
The amount, claim procedure and any separate limitation issue require review of the actual records.
Official sources and the next records to check
Sources were checked on 2026-11-01 for Korean rules in 2026.
Current statutes and precedent texts were verified through the National Law Information OPEN API.
Recheck later amendments, the actual contract, valuation, claims and holiday designations before using the figures in a case.
- Provisional Registration Security Act: MST188538, effective 2017-03-28, Articles 1–5, 11 and 12
- Civil Act: MST284415, effective 2026-03-17, Articles 157, 159, 160, 161, 360, 607 and 608
- Interest Limitation Act Article 6: MST268667, effective 2025-07-22; maximum-interest regulation MST230727, effective 2021-07-07
- Government-office public holiday regulation MST285779, effective 2026-05-11, with the Labor Day provision from 2026-05-01; holiday table covers 2026–2027
- 2015Da13171 (2016-06-23), 90Da8855 (1992-05-12)
- 2012Da47074 (2014-08-20), 2018Da215947 (2018-06-15), 2016Da248325 (2021-10-28)
Reconcile inputs with the creditor statement and notice, save the TXT review report, then arrange repayment, appraisal and registration-cancellation preparation.
If a court auction is involved, also review mortgage auction withdrawal and stay payoff preparation and auction distribution recovery.