Korean Law in English
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Commercial Act — Article 405 (Rights and Obligations of Shareholders Filing Lawsuits)

상법 제405조

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) If a shareholder who has filed a lawsuit pursuant to Article 403 (3) and (4) wins the case, he/she may demand reimbursement from the company for the cost incurred in relation to the action and a reasonable amount of other expenses disbursed for the action. In such cases, the company which has paid the expenses incurred in relation to the legal action shall have a right of recourse against the directors or auditors. <Amended by Act No. 1212, Dec. 12, 1962; Act No. 6488, Jul. 24, 2001>

(2) If a shareholder who has filed a lawsuit pursuant to Article 403 (3) and (4) loses the case, he/she shall not be liable for damage suffered by the company, except for damage attributable to malicious intent.

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