South Korea

Although there are no specific prohibitions on third party litigation funding in South Korea, it is not yet commonly used.

This may be because there is currently no clear legislative framework or judicial authority permitting the use of funding.

While other alternative fee arrangements, such as contingency fees and success fees for lawyers, are commonly used, uncertainty surrounding the applicability of certain legislation to third party funding will likely require clarification before its widespread adoption. For example, clear guidance that Article 6 of the Trust Act is inapplicable to standard third party funding agreements would be welcome.