South to disregard validity of NK laws - The Korea Times

South to disregard validity of NK laws

By Lee Hyo-sik

The government has decided not to recognize the validity of North Korean court rulings on family background for North Koreans seeking inheritance from their family members living here.

The move comes as a growing number of North Koreans are expected to file lawsuits against mostly their half brothers and sisters living in the South to claim part of the fortunes left by their deceased parents.

The Justice Ministry said Thursday that it took out all clauses that acknowledge the legitimacy of North Korean laws and court rulings from a special law governing inheritance issues among family members in the two Koreas.

In January, the ministry enacted the special law to cope with the increasing number of North Koreans who file suit here to claim the fortune of their family members south of the border.

The original version had mandated courts here to recognize the rulings of North Korean courts when verifying family ties between plaintiffs and defendants.

However, with growing concerns over the possible capital flow into the impoverished communist state when North Korean plaintiffs are awarded with the money, the government has changed its position not to accept the legitimacy of North Korea’s judicial rulings.

Some conservative groups have also raised the possibility that North Korean authorities may be assisting or instigating the plaintiffs.

“We have decided not to recognize the validity of North Korean laws like those of other countries because it could create a range of problems. We revised the special law so that courts do not have to take the North’s laws into account when ruling on inheritance cases filed by North Koreans,” a Justice Ministry official said.

The ministry said the court will appoint a legal custodian when North Koreans are awarded with the fortune after winning an inheritance suit.

“If North Koreans are allowed to choose an administrator of their properties, it will be much easier for them to take money out of the country and bring it into the North. We are sure that we have made all necessary changes to the special law. The National Assembly should pass it as soon as possible,” the ministry official said.

Given the fact that millions of family members were separated during the 1950-53 Korean War, more North Koreans will likely file inheritance suits against their families here.

On July 12, a local court recognized the partial rights of a bereaved North Korean family to inherit their father’s assets in South Korea. It was the first time that North Koreans have won partial ownership of assets left by a relative in the South.

Yoon Byeong-jeon and his three siblings in the North, children of Yoon Woo-geun, who died in South Korea in 1989, demanded 2.5 billion won and part of the real estate left by their late father, valued at 10 billion won ($9.3 million) in 2008.

The court mediated a compromise splitting the fortune between family members in the two Koreas.

Lee Hyo-sik

Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.

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