Korean IOU (차용증)

How it works

1. Enter the amount, the date it was lent and the repayment date. Type the amount in figures; the Korean words (금 ○○원정) are written for you.
2. Enter the interest rate and the day it is paid, or leave it empty for an interest-free loan, which puts the clause saying so on the note.
3. Fill in the lender, the borrower and, if there is one, a joint guarantor; a guarantor adds the joint-guarantee clause and a signature block.
4. Download the PDF, print one per party, sign or seal each, and keep one each.

Frequently asked questions

How much interest is allowed?

Korea’s Interest Limitation Act (이자제한법) caps interest at 20 % a year, and anything above is void. This refuses a rate or a default rate above 20 % rather than printing a clause that would not hold.

Why is the amount written in words as well?

A figure on its own can have a digit added to it. Writing the amount out in Korean words and ending it with 정 (금 일천만원정) is how Korean IOUs and receipts close that door.

Is the note enough to get the money back?

It is the key evidence of the loan and its terms, but not enough on its own to enforce it: an unpaid loan still goes through a payment order or a lawsuit. A notarised deed (공정증서) can be enforced without a trial. Where you can, lend by bank transfer so there is a record too.

Is this legal advice?

No. For a large sum or an expected dispute, talk to a Korean lawyer or the Korea Legal Aid Corporation.