Reconciliation and Execution
Court-Approved Reconciliation: Pursuant to Article 277 of the Civil Procedure Code, if parties settle their case by reconciliation while the litigation is being heard and the court approves the reconciliation, it shall have the effect of a judgment. In a matter where court-approved reconciliation exists, re-filing a case is not permissible (pursuant to Articles 5(1) and 244(2)(a) of the Civil Procedure Code). An agreement stated to be court-approved in the course of execution proceedings does not have the effect of a judgment or decision; therefore, an objection cannot be raised on the ground that the matter was previously concluded by judgment. The execution process cannot create new rights and obligations. [(Cassation File No. 175838)]
Commercial Law
Private Limited Company Shares: In a private limited company, unless the Memorandum and Articles of Association provide otherwise, the heirs of a member shall become the heirs of the deceased’s shareholding. Pursuant to Article 328(2) of the Commercial Code, when several persons are co-owners of a shareholding, they must appoint a representative to exercise the rights of membership. This obligation to appoint a representative exists when the shares are indivisible or when the number of shares is such that they cannot be divided individually and are compelled to be held jointly. If the deceased member’s shareholding is divisible in proportion to the heirs’ shares, the heirs can register individually as members and are not required to appoint a representative. [(Cassation File No. 177968)]
Intellectual Property
Trademark Registration: A trademark should not be registered if it is identical to or has a similarity likely to cause confusion with another person’s prior trademark. A new mark presented by taking the essential character of a prior trademark or by making minor alterations can cause confusion. Regarding the distinction of trademarks, the burden of verification is placed on the supplier to distinguish their product from others, not on the consumer. Pursuant to Article 5(1) of the Proclamation, when the Authority registers a trademark, it must ensure that it clearly enables the distinction of one person’s products from another’s. [ (Cassation File No. 178185)]
Banking Law
Bank Remittance Payment: When a bank pays money sent by remittance in the name of a customer, there is no legal reason for it to be compelled to conduct additional investigation to verify the authenticity of the seal or signature on the identification card, beyond visually verifying the seal and signature on the payee’s identification. When a bank makes a payment, what it is primarily expected to verify is information presumed to be known only by the payee (the sender’s identity, the amount of money sent, the secret number, and the name of the person sent to). If these pieces of information are confirmed to be consistent with the bank’s data, and the identification presented by the money recipient is similar to the name provided, there is no reason for the bank to be held liable on the ground that it failed to exercise due diligence. [(Cassation File No. 188419)]