Investment Recovery Lawyer | What to do when your investment doesn't come back

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

Investment Recovery | How Fees Are Calculated

※ 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

Frequently Asked Questions

Official References

• Korea Law Information Center — https://www.law.go.kr
• Easy-to-Find Everyday Legal Information — https://easylaw.go.kr
• Korea Legal Aid Corporation — https://www.klac.or.kr