Korean civil law has a lien, the right of pledge and mortgage as real rights guaranted by way of security. A security of pledge is movable property and that of mortgage is real estate. But a security of the lien is both as well.
The right of pledge h...
Korean civil law has a lien, the right of pledge and mortgage as real rights guaranted by way of security. A security of pledge is movable property and that of mortgage is real estate. But a security of the lien is both as well.
The right of pledge have possession as public announcement against mortgage that has registration.
Public announcement of lien is possession. Also, the lien has possession title to the security, until cost come from the security is payed back. This title does not need registration as a public announcement
The highest bidder at a real estate auction must give more money to the lien holder for taking his property knocked down. So the lien holder has priority to request first repayment. The cost must be payed back but, it is not open in detail at the real estate auction procedure. The bidders are nervous about lien and so then they bid a low price because of its un-predictable risk.
This study analyzed lien holder's rights from real estate auction to legal proceedings concerning liens and examed judgement about lien in judical procedure.
For more activating the real estate auction, This study gives several improvements.
· Open the information of lien in detail at real estate auction procesure.
· Register the lien in real estate register book for public announcement.
· Deposit some guaranty money on real estate auction
Removing hidden false statement, real estate auction is more active, the capital will be more circulate as well.