Money sent by mistake: you claim it from the recipient, not the bank

When money goes to a stranger because you mistyped one digit of an account number, the first thing you do is call the bank. The bank may ask the recipient to return it, but if the recipient does not agree, the bank cannot reverse the money on its own. This is because, legally, the party you must ask to return the money is not the bank.

How the legal relationship works

Supreme Court case law holds that once an account transfer is made, the recipient acquires a deposit claim against the bank for that amount, and the sender must claim return of unjust enrichment (부당이득반환) from the recipient (Supreme Court Decision 2007Da51239, November 29, 2007). Even if the transfer was a mistake, you have no right to demand that the bank return the money.

Article 741 of the Civil Act requires a person who, without legal cause, has obtained a benefit from another's property and thereby caused that other a loss to return the benefit. Money that came in by mistake must be returned because the recipient has no legal cause to keep it.

The scope of what you get back

If the recipient received it without knowing the circumstances, they must return it to the extent the benefit remains; if they received it knowingly, they must return the benefit with interest and compensate any loss (Article 748 of the Civil Act). That is why it is a good idea to notify the recipient by message or certified mail (내용증명) that the money was sent by mistake. With money, the benefit is often regarded as remaining even if the recipient has spent it.

A recipient who spends money knowing it came in by mistake may also face criminal liability. When told of this, quite a few recipients get in touch and return the money. If the recipient's account has already been seized by another creditor, matters become complicated, so it is important to act quickly.

Sometimes a recipient says they will return the money but asks for a fee or a reward. Since it is money they are obliged to return, there is no legal reason to agree to such demands; at most you settle actual costs such as the transfer fee.

What to do, in order, if they do not return it

First ask the bank you sent it from to request return of the mistaken transfer, and if you still cannot get it back, move on to the Korea Deposit Insurance Corporation's return assistance program, a payment order (지급명령) or a lawsuit. Even if you know only the name and account number, you can file a lawsuit and then apply for a fact inquiry to the bank to find the recipient's address. If the claim is 30 million won or less, it proceeds as a small claims case. A claim for return of unjust enrichment is an ordinary civil claim and is in principle subject to a ten-year limitation period.

Cases that are not mistaken transfers

Money sent after being deceived by voice phishing is not eligible for mistaken transfer return assistance. In that case, immediately ask the sending bank or the receiving bank to suspend payment and report it to the police to start the damage relief procedure. Also, money paid while knowing you owed nothing cannot be reclaimed (Article 742 of the Civil Act), so if you sent the same payment twice, keep evidence that it was a mistake. Please also note that money given for an illegal cause, such as a gambling debt, cannot in principle be recovered (Article 746 of the Civil Act).