When there is a record of the transfer but the other person says the money was a gift

The record of sending the money is right there in your bank statement. But once the lawsuit begins, the other person almost always responds with one sentence: it was not a loan, it was money they were given. Many people pour out their sense of injustice when they hear this, but what matters in court is not injustice but proof.

Sending money and lending money are different facts

The Civil Act defines a loan for consumption (소비대차) as a contract in which ownership of money is transferred and the parties agree that the same amount will be returned (Article 598 of the Civil Act). What the party claiming repayment must prove is not the transfer itself but the agreement to repay. A bank transfer record shows only that money passed from one person to another; it does not say whether that money was a loan, a gift or an investment.

So in cases without an IOU, the circumstances before and after the transfer decide the outcome. Points such as whether the message asking for money said ‘I'll pay you back by next month’, and whether the other person, when pressed, replied ‘Please wait a little longer.’ If they did not counter that it was a gift when asked to repay, that reaction is also a relevant circumstance.

Just because the other person claims it was a gift does not mean the plaintiff must disprove a gift without leaving any gaps. However, the judgment differs depending on how many circumstances supporting a loan you put forward, and how specific they are. If you match the transfer records and conversations in a single table in date order before the lawsuit, you can see where the gaps are.

Circumstances the court considers together

• The relationship between the two people, and whether the amount is a natural one to give as a gift in that relationship
• Conversations around the time the money was sent, especially about its purpose and when it would be repaid
• Records of any partial repayment or money received as interest
• How the other person reacted when asked to repay

The closer the relationship, such as partners or family, the more easily a gift claim gains weight, especially for living expenses or shared costs. Conversely, if a large sum was sent at once, the judgment may lean toward it being hard to see as given for nothing. Keep in mind that no single circumstance decides the outcome; the court weighs several circumstances together.

Evidence you can still create now

Even if the relationship has already soured, it is sometimes not too late. Send a message stating the amount lent and the date and asking when they can repay, and keep their reply. If the other person does not deny the amount and only talks about when they will repay, that reply can be as good as an IOU. Call recordings can also be used, but they must be recorded by someone who took part in the conversation directly.

There are also points to be careful about. If, in an emotional message, you use an expression that could be read as a gift, such as ‘the money I helped you with back then’, the other person will submit that very sentence as evidence. Read it once more before sending, and if the dispute looks likely to be serious, it is better to seek advice first on how to word your question.