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South Korea's New Civil Debt-Recovery Rules Take Effect
South Korea's new civil debt-recovery rules, effective from November 1, allow courts to seize and sell cryptocurrency held on exchanges and in private wallets, including assets before debtors receive formal notice. Courts can attach these assets and order directly held crypto delivered to an enforcement officer. The rules permit this transfer to occur before the attachment order is formally served on the debtor. If the officer receives the cryptocurrency first, the attachment becomes effective upon receipt. However, enforcement against self-custodied assets could remain challenging where debtors control the private keys needed to authorize transfers. Creditors can also seek additional court orders to recover the value of attached cryptocurrencies, with judges authorizing transfers to creditors at court-determined valuations or directing enforcement officers to arrange sales through virtual asset service providers. The regulations also establish procedures for restoring assets when enforcement is withdrawn or canceled, improving legal certainty and consistency in handling cryptocurrency-related enforcement cases.