Chapter II: The Enforcement of Monetary Claims
Section II: The Enforcement Against Movable Property
Article 45
The compulsory enforcement against movable property is carried out by the means of attachment, auction, or sale.
Article 46
The attachment of movable property is carried out by a process server supervised by a clerk as ordered by an enforcement judge. When necessary, they may request the assistance from relevant authorities, autonomous bodies, business groups, industry groups, or other groups, or persons with specialized knowledge and experience with regards to the attached property.
Article 47
In attaching the movable property, the enforcement official shall take possession of it. Where the attached property is delivered to be kept, it shall be carried out in the following manners:
1. Posting a paper script on the property attached.
2. Leaving a brand or an impression of sealing wax on the property attached.
3. Other appropriate methods that are sufficient to publicly display the attachment.
When necessary, the methods prescribed in the preceding paragraph may be adopted in combination.
Article 48
When implementing an attachment, the enforcement official may search and inspect the debtor's residence, office, warehouse, vault, and other storage areas that may hide items.
Where the debtor does not appear at the time of the attachment, the enforcement official shall order the debtor's relative or neighbor with discretion to appear. When necessary, the official may request the police to be present.
Article 50
The attachment of the movable property is limited to the property whose price is sufficient to repay the claim amount under the compulsory enforcement and the costs to be borne by the debtor.
Article 50-1
Where it is impossible to derive a remaining balance after repaying the costs of compulsory enforcement from the proceeds derived from the sale of the movable property to be attached, the enforcement court shall not attach a property.
Where it is impossible to derive a remaining balance after deducting the priority claims and the costs of compulsory enforcement from the proceeds derived from the sale of the attached property, the enforcement court shall revoke the attachment and return the property to the debtor
In the situations in the preceding two paragraphs, the court shall first consult the creditors' opinion. Where the creditor represents his/her willingness to bear the costs should the proceeds derived from the sale of the attached property do not exceed the amount of the priority claims and the costs of compulsory enforcement, the preceding two paragraphs do not apply.
Article 51
The effect of the attachment extends to the natural profits of the attached property.
After the attachment is implemented, the transfer, creation of impositions, or any other act that may encumber the enforcement effect made by the debtor with regards to the attached property shall have no effect on the creditor.
After the attachment is implemented, where a third person, without permission of the enforcement court, takes possession of the attached property or performs any act that may encumber the enforcement effect, the enforcement court may, on its own authority or upon petition, remove it.
Article 52
During the attachment, the debtor and his/her relatives who live with him/her shall be left with food, fuel, and money necessary to sustain their living for two months.
The time period in the preceding paragraph may be adjusted by the enforcement court upon reviewing the debtor's family circumstances, provided that it is no shorter than one month and no longer than three months.
Article 53
The following movable property is not subject to attachment:
1. Clothing, bedding, and other articles necessary to the debtor and his/her relatives who live with him/her.
2. Tools and articles necessary for the occupation and education of the debtor and his/her relatives who live with him/her.
3. Medals and other articles embodying honors received or inherited by the debtor.
4. Portraits, altars, tombstones, and other sacrifices and articles used in worship.
5. Natural profits unseparated from the land that cannot be harvested within a month.
6. Inventions or literary works that have not been published.
7. Machinery or equipment, evacuation equipment, and other articles which are attached to buildings or other work objects and are installed to prevent disasters or to ensure safety as required by laws or regulations.
Where the enforcement court, after considering the circumstances of the creditor and the debtor, finds the application of the provision of the preceding paragraph to be manifestly unfair and consider the attachment still appropriate, it may, upon petition, attach all or part of the property. The same applies where the debtor consents to the attachment.
Article 54
In implementing an attachment, the clerk shall produce a written transcript of the attachment and a list of the attached articles.
The written transcript of the attachment shall state the following items:
1. The right that serves as the cause of attachment.
2. The location, category, quantity, and quality of the movable property and other particulars that shall be noted.
3. The creditor and the debtor.
4. The beginning and ending date and time of the attachment.
5. The custodian of the attached movable property.
6. The method of custody.
The attachment personnel shall sign the written transcript referred to in the preceding paragraph. The custodians and persons who appear pursuant to Article 48 paragraph 2, if any, shall also sign it.
Article 55
Enforcement officials shall not enter into a residence with people living in it to implement an attachment on Sundays or other days off and before sunrise and after sunset, except in an emergency approved by the enforcement judge.
Where the attachment has begun before the sunset, it may continue after the sun has set.
The enforcement judge's order in the first paragraph shall be presented to the debtor at the time of the attachment.
Article 56
Where the clerk or process server finds that the debtor's movable property has already been attached in other matters during the course of the attachment, they shall promptly inform the enforcement judge of the cause of the attachment.
Article 57
After the attachment, the enforcement judge shall promptly set an auction date.
The interval between the attachment date and the auction date shall be at least seven days, except that the creditor and debtor agree otherwise or the nature of the attached property requires a swift sale.
The auction date in the preceding paragraph shall not exceed one month, except due to the nature of the attached property or for compelling reasons.
Article 58
After the attachment, the debtor may present cash prior to the conclusion of the auction and petition for the revocation of the attachment.
Where a creditor withdraws its petition for compulsory enforcement after the conclusion of the auction and before the transfer of the title of the auctioned property, he/she must obtain the consent of the winning bidder.
Article 59
The attached movable property shall be delivered to a depository appointed by the court with jurisdiction or entrusted to an appropriate custodian commissioned by the court with jurisdiction. The creditor may serve as the custodian if deemed appropriate.
Except for valuables and securities, the attached property may be kept with the debtor upon the creditor's consent or when deemed appropriate.
When the attached property is delivered to the custodian, he or she shall be informed of the punishments provided under the Criminal Code for any destruction, removal, or smearing of the attachment paper script or any act against the effect of the attachment.
When the attached property is delivered to the custodian, the custodian shall be ordered to issue a receipt.
Where the debtor is the custodian of the attached property, he/she may, upon approval, use it to the extent that does not diminish the value of the attached property.
Article 59-1
Where the attached securities require the exercise of rights or preservation within their specified time period, the enforcement court shall act on behalf of the debtor when the beginning period of that period has arrived.
Article 59-2
For attached natural profits which are unseparated from the land, the enforcement court may begin to auction it only after the harvest period has arrived.
The auction in the preceding paragraph may take place after the harvest. Where the auction takes places before the natural profits are detached, the cost of the harvest shall be borne by the buyer.
Article 60
The attached property shall be auctioned publicly, provided that the enforcement court may sell the attached property without going through the auction proceedings under the following circumstances:
1. The creditor and debtor make a petition or reach an agreement on the price of the attached property.
2. The nature of the attached property is easily perishable.
3. The value of the attached property is likely to diminish.
4. The attached property is gold, silver or objects with a market price
5. The custody is difficult or the custodian fee is excessive.
Provisions of Article 71 apply mutatis mutandis to the sale in the preceding paragraph.
Article 60-1
When deemed appropriate by the enforcement court, attached securities need not go through the auction proceedings and shall be handled pursuant mutatis mutandis to Articles 115 to 117.
Article 61
An auction of a movable property shall be carried out by the process server supervised by the clerk as ordered by the enforcement judge at the location of the enforcement court or the movable property.
When deemed necessary by the enforcement court, the court may commission an auction house or an appropriate person to hold the auction in the preceding paragraph, provided that the court shall send personnel to supervise it.
Article 62
Where the attached property is a valuable of which the value is difficult to ascertain, the enforcement court shall appoint an appraiser to appraise it.
Article 63
The enforcement court shall notify the creditor and debtor to appear on the auction date. Where the parties cannot be notified to or do not appear at the auction, the auction will not be suspended.
Article 64
The enforcement court shall make a public announcement in advance of the auction of the movable property.
The public announcement in the preceding paragraph shall state the following items:
1. The category, quantity, quality of the auction objects, and other particulars that shall be noted.
2. The reason for the auction and the date and hours and the location of the auction.
3. The location and the date and hours for reviewing the auction objects and the written transcripts of the attachment.
4. The deadline for paying the auction price, if any.
5. The qualification or conditions for the bidders, if any.
6. The amount of deposit, if any.
Article 65
A public announcement of the auction shall be displayed at the town/city (district) office of the enforcement court and the location of the movable property or the auction place. When deemed necessary or upon the creditor's or debtor's petition, the auction can also be published on the court's website; when the court deems it necessary, the auction may be published in the official gazette or newspaper.
Article 66
The auction shall take place five days after the public announcement has been made, except when the nature of the property requires a swift sale.
Article 68
The delivery of the auction objects shall be made when the auction price is paid in full.
Article 68-1
After the enforcement court auctions the securities, it may conduct the necessary act of making an endorsement or modifying the title to the buyer on behalf of the debtor and state its reason.
Article 68-2
Where the winning bidder fails to pay the full amount of the auction price, the enforcement court shall hold the auction again. At the second auction, the original winning bidder may not bid again.
Where the auction price at the second auction is lower than the price at the original auction and the costs of holding the second auction combined, the original winning bidder shall pay the difference.
The difference in the preceding paragraph shall be determined by the enforcement court by a ruling pursuant to its own authority.
Where the deposit provided by the original winning bidder is not sufficient to cover the difference, the enforcement court may carry out the compulsory enforcement against the original winning bidder pursuant to the ruling in the preceding paragraph.
Article 69
The winning bidder of the auction objects does not enjoy a right of warranty for defective goods.
Article 70
The enforcement court shall, upon the creditor's or the debtor's petition or on its own authority when it deems necessary, pre-determine a floor price for the auction objects, determine the deposit amounts, and order the bidder to pay the deposit before bidding. Any failure to pay it accordingly will render the bidding invalid.
When determining the floor price, the enforcement court shall consult the creditor's and debtor's opinion, except when they cannot be notified or do not appear when the period expires.
The auction is concluded after a bidder puts forward the highest bid and the number is shouted three times.
Where the highest bidding price offered by the bidder is lower than the floor price, or, in the absence of a floor price, the creditor or debtor deems the bidding price inadequate and raises an objection, the person executing the auction shall not conclude the auction and the enforcement court shall determine another date for a second auction. However, where the creditor agrees to accept it at the determined floor price, the enforcement court shall turn it over to the creditor.
The second auction of the auction objects pursuant to the preceding paragraph shall be auctioned to the bidder offering the highest price. However, where the highest bidding price is less than fifty percent of the floor price, or, in the absence of a floor price, the highest bidding price is manifestly inadequate, the enforcement court shall determine a price for the creditor to accept; where the creditor refuses to accept it, the enforcement court shall revoke the attachment and return the auction objects to the debtor.
The debtor shall not bid for the auction objects.
Article 71
Where there is no bidder for an auction object, the enforcement court shall determine a price for the creditor to accept. Where the creditor is unwilling to accept it or cannot accept it pursuant to laws, the enforcement court shall revoke the attachment and return the auction object to the debtor. However, where the auction object is manifestly likely to be auctioned at an adequate price, paragraph 5 of the preceding article applies mutatis mutandis.
Article 72
The auction shall be terminated immediately when the auction proceeds have become sufficient to repay the claim amount of the compulsory enforcement and to cover the costs to be borne by the debtor.
Article 73
After the auction is completed, the clerk shall prepare a written transcript of the auction which states the following items:
1. The category, quantity, and quality of the auction objects and other particulars that shall be noted.
2. The creditor and the debtor.
3. The name and address of the winning bidder and his/her highest bidding price.
4. The reason if the auction is cancelled or suspended.
5. The date and hours and the place of the auction.
6. The location and year, month, and date for preparing the written transcript of the auction.
The written transcript in the preceding paragraph shall be signed by the person executing the auction.
Article 74
The proceeds from the auction, if with any remaining balance after deducting the costs of the compulsory enforcement, shall be paid to the creditor. The remaining balance, if with any balance that exceeds the creditor's costs for obtaining the enforcement title and the amount of his or her claims to be paid, shall be returned to the debtor.