Ship Arrests And Maritime Liens In South Korea

1. Introduction

Foreign shipowners and their creditors often ask whether ship arrests are possible or whether maritime liens are enforceable in the Republic of Korea ("Korea"). Due to the nature of the maritime shipping business, both privately-owned and chartered vessels inevitably enter foreign ports around the world, including that of Korea. When debtor-owned vessels are provisionally seized or maritime liens are invoked at Korean ports of entry, shipowners and their creditors have come to consider Korean law as an option to enforce their rights.

Ironically, while most countries, including Korea, grant creditors a powerful priority right that is senior to other security interests, the laws on exercising such maritime liens, including ship arrest, differ by country. This undoubtedly causes considerable inconvenience and difficulty when exercising maritime liens. This article will address some of the important points to note when a foreign party intends to