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Commercial Act — Article 168-5 (Cancellation of Financial Lease Agreements)

상법 제168조의5

This English translation is based on the Korean text effective 2018-12-19. The Korean law has since been amended (current version effective 2026-09-10) — check the Korean original.

(1) Where a financial lease agreement is cancelled for a cause attributable to the financial lessee, the financial lease business entity may either request the financial lessee to pay an amount equivalent to the remaining financial lease fees in lump sum or to return the relevant article under financial lease.

(2) The demand of a financial lease business entity under paragraph (1) shall have no influence on a claim for damages filed by a financial lease business entity against a financial lessee.

(3) If a financial lessee is unable to continue to use an article under financial lease due to significant changes in circumstances, he/she may cancel the financial lease agreement by giving three months' prior notice. In such cases, the financial lessee shall compensate for damages suffered by the financial lease business entity due to cancellation of such agreement.[This Article Newly Inserted by Act No. 10281, May 14, 2010]

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