Glossary of South Korean Property Law Terms

Introduction

This glossary defines key terms used in South Korean property law, governed by Part II (Real Rights, Articles 185–372) of the Civil Code (민법). The law adopts the German numerus clausus of real rights and the distinction between ownership and possession.

Key Terms

Ownership (소유권)

The fullest real right, entitling the owner to use, enjoy, and dispose of property within legal limits (Article 211 of the Civil Code). Ownership is indivisible and exclusive. Land ownership does not extend indefinitely upward or downward — it is limited to the extent necessary for ordinary use.

Possession (점유)

The factual control over a thing with the intention of holding it as one’s own (animus possidendi). Possession is protected independently of ownership — a possessor may seek recovery of possession through the petitory action (소유권에 기한 물권적 청구권) or possessory action (점유보호청구권) without proving ownership.

Superficies (지상권)

A real right to use another’s land for the purpose of owning buildings, trees, or other structures on that land (Articles 279–284). Superficies is the most common form of land-use right for building owners in Korea. It may be created by contract, will, or prescription.

Mortgage (저당권)

A security interest over real property (land or buildings) created to secure a debt. The mortgagee has the right to seek satisfaction of the debt from the property’s sale proceeds in preference to other creditors (Articles 356–371). Korea does not have a trust deed system — mortgages are the primary real property security device.

Land Trust (부동산신탁)

A legal arrangement under the Trust Act (2009, comprehensively revised 2011) where legal title to real property is transferred to a trustee who manages the property for the benefit of beneficiaries. Land trusts are increasingly used for development projects, real estate investment trusts (REITs), and asset securitization.

Real Right (물권)

An absolute right over a thing, enforceable against the entire world. The Civil Code establishes a closed list (numerus clausus) of real rights: ownership, superficies, servitude, leasehold (chonsegwon), mortgage, pledge, right of retention, and a few others. Parties may not create new categories of real rights by agreement.

Chonsegwon (전세권)

A uniquely Korean real right — a long-term leasehold where the tenant pays a large lump-sum deposit (typically 50–80% of property value) instead of monthly rent. The deposit is returned to the tenant at the end of the term. Chonsegwon is registered as a real right and takes priority over subsequent mortgages.

Registration (등기)

The system of public recording of real rights in land and buildings, administered by the court registration offices. Registration is required for the creation, transfer, or modification of real rights. Korea maintains a Torrens-type registration system with state-guaranteed accuracy.

Prescription (취득시효)

The acquisition of ownership or other real rights through continuous, open, and peaceful possession for a prescribed period (20 years for land, 10 years for registered property under a valid title — Article 245 of the Civil Code).

Servitude (지역권)

A real right to use another’s land for the benefit of one’s own land (the dominant tenement). Examples include rights of way, drainage rights, and rights to light (Articles 291–302).

Right of Retention (유치권)

A right to retain possession of property until the owner satisfies a claim relating to that property (Article 320). Common in construction contracts — a builder may retain the building until paid.