Investment Recovery Lawyer
Investment Recovery Lawyer | What to do when your investment doesn't come back
Investment recovery covers the civil and criminal steps an investor takes when a company, fund manager, or individual fails to return invested capital or promised returns. The right strategy depends heavily on how the money was actually structured — as equity, a loan disguised as investment, or a fraudulent inducement — because that classification determines which claims are even available (민법 제741조, 민법 제750조). Because informal investments are rarely backed by solid paperwork, the first fight is often over proving what was actually agreed, and the second is finding assets before they disappear.
Investment Recovery | Was It Really an 'Investment,' or a Loan You Called an Investment?
Before any recovery strategy can be built, the money transfer has to be characterized correctly. Courts do not simply accept the label the parties used at the time — they look at what was actually agreed and how the risk was allocated.
Equity investment vs. disguised loan
If you bought shares or a membership interest and simply lost value because the business failed, that is investment risk you generally bear alone — there is no independent right to demand your principal back. But if the arrangement guaranteed a fixed return or principal repayment regardless of business performance, courts often treat it as a loan for consumption (민법 제598조) rather than a true investment, which opens the door to a straightforward repayment claim.
Why the paperwork you have (or don't have) decides everything
Many informal investments are documented only through KakaoTalk messages, bank transfer records, or a one-page memo. When there is no formal investment agreement, the burden falls on you to reconstruct the terms — deposit amounts, promised return dates, and any guarantee language — because that record will determine whether you can pursue a claim for return of unjust enrichment (부당이득반환청구, 민법 제741조) or breach of contract.
Partial recovery through unjust enrichment even without a written contract
Even where no clear contract exists, if the underlying project never happened, funds were diverted to an unrelated purpose, or the company was already insolvent when it took your money, a claim for unjust enrichment can sometimes recover funds that a straight contract claim could not reach.
Investment Recovery | Finding and Freezing Assets Before They Disappear
A favorable judgment is worthless if there is nothing left to collect against by the time you get it. In investment disputes, the counterparty often already knows repayment is unlikely and moves assets out of reach well before you file suit.
Provisional attachment as the first move, not an afterthought
Before or immediately after filing the main claim, a provisional attachment (가압류) can freeze the counterparty's bank accounts, real estate, or receivables so they cannot be sold or transferred while litigation proceeds. Because attachment applications are decided quickly and often without notice to the other side, moving early is usually the single most important tactical decision in an investment recovery case.
Locating hidden or transferred assets
If assets have already been moved to a spouse, relative, or shell company, an investor can pursue a creditor's right of revocation (채권자취소권, 민법 제406조) to undo a fraudulent transfer made to evade repayment. This requires showing the transfer was made knowing it would harm creditors, so timing and documentation of when the debt arose relative to the transfer matter a great deal.
Using formal disclosure procedures when you don't know what they own
Court-ordered financial disclosure and property list submission procedures can force a debtor who has already lost a judgment to disclose their assets, which is often the only realistic way an investor learns where remaining funds or property actually are.
Investment Recovery | When a Fraud Complaint Changes the Civil Case
Not every failed investment is a crime — but where the person who took your money never intended to use it as represented, a criminal complaint can create pressure and evidence that a civil suit alone cannot.
The line between a bad investment and fraud
Fraud (형법 제347조) requires proof that the other party deceived you about a material fact at the time they took your money — for example, fabricating a project, exaggerating expected returns with knowledge they were false, or already being insolvent while soliciting new investors. A business simply underperforming is not, by itself, fraud.
Why investors often file criminal complaints alongside a civil suit
A criminal investigation gives investigators the power to compel bank records and interview witnesses in ways an individual investor cannot on their own, and the resulting file can later be used as evidence in the civil case. It also creates real pressure on the counterparty to negotiate a settlement, since a criminal record carries consequences a civil judgment alone does not.
Multiple victims: joining forces changes the leverage
In fund and platform-investment cases, dozens or hundreds of investors are often affected by the same scheme. Coordinating with other victims — whether informally or through a joint criminal complaint — can strengthen the fraud narrative and improve access to whatever assets remain for distribution.
Investment Recovery | From Initial Consultation to Recovery
We review transfer records, messages, and any agreement to determine whether the claim is best framed as loan repayment, breach of investment contract, unjust enrichment, or fraud.
Before filing, we check what is realistically available to collect against — real estate, business accounts, vehicles — since this shapes whether provisional attachment is worth pursuing immediately.
Where assets are identified, we file for provisional attachment to freeze them, often alongside a formal demand letter that starts the clock on interest and puts the counterparty on notice.
Depending on the facts, we file a civil claim for repayment or damages, a criminal complaint for fraud, or both in parallel to maximize pressure and evidence-gathering power.
After a favorable judgment or settlement, we pursue enforcement against the frozen or newly disclosed assets, including forced sale or garnishment where necessary.
Investment Recovery | How Fees Are Calculated
Generally calculated based on the claimed amount and the complexity of characterizing the investment (contract vs. loan vs. fraud), since that determines how much fact-finding is required before filing.
In recovery-focused cases, a portion of the fee is often structured as a percentage of amounts actually recovered, reflecting the reality that a judgment is only valuable if collection succeeds.
Filing for provisional attachment requires a court-set security deposit (either cash or a guarantee insurance policy), which is separate from attorney fees and is refundable depending on the outcome.
If a parallel fraud complaint is filed, fees are typically calculated separately from the civil case, reflecting the additional work of preparing a criminal complaint and coordinating with investigators.
Court filing fees, service-of-process costs, and asset search fees (such as real estate and vehicle registration searches) are billed separately from attorney fees.
※ Costs vary depending on case complexity and specific circumstances; exact fees will be provided during consultation. No specific outcome is guaranteed.
Investment Recovery | Self-Check for Investors
1️⃣ Documentation Check
- Do you have bank transfer records showing exactly when and how much you sent?
- Is there any written agreement, even an informal memo or chat message, describing what was promised?
- Did the other party promise a fixed return or guarantee return of principal regardless of business performance?
- Do you have any record of the business plan or project you were told the funds would be used for?
2️⃣ Asset Situation Check
- Do you know whether the counterparty (individual or company) owns real estate or a business account?
- Has the counterparty recently transferred property to a family member or another entity?
- Is the counterparty still operating, or have they become unreachable?
3️⃣ Fraud vs. Bad Investment Check
- Was there a specific false statement about the project, license, or use of funds at the time you invested?
- Was the counterparty already insolvent or already facing other investor complaints when they took your money?
- Are there other investors in the same scheme you could coordinate with?
4️⃣ Timing Check
- How long ago was the promised repayment or return date, and has time run since then?
- Have you already sent a formal demand letter, and did you keep a record of it?
- Is there a risk that a limitation period could be approaching for any part of your claim?
