Chased to New Zealand on debts allegedly arising from his failed Korean construction company, Jae Ho Huh hid from pursuers appearing in court only when threatened with bankruptcy. He was given time to dispute a $2.1 million debt allegedly owed; bankruptcy averted.
The High Court was told Mr Huh previously controlled Korean property company Dae Joo Group with annual turnover in excess of seven billion dollars. The business collapsed. Mr Huh left Korea for New Zealand, unwilling to return for fear Korean authorities might take action for alleged breaches of tax law.
Meanwhile, Yoonwoo Development Corp took action in Korean courts for breach of contract. Under Korean law, litigants can reach a settlement over a dispute and have their agreement filed in court, having effect of a court order. Litigants acknowledge acceptance by affixing their seal to the agreement. There is a register of seals to identify ‘signature’ of formal documents. Armed with a Korean court order for $2.1 million ostensibly marked with the seals of Mr Huh’s companies and Mr Huh’s personally, Yoonwoo sued in the New Zealand courts to get an enforceable New Zealand court judgment for $2.1 million. Evidence was given that Mr Huh proved evasive, avoiding personal service of intended New Zealand court proceedings. Notice was given by advertisement. Mr Huh made no court appearance.
When Yoonwoo then attempted to bankrupt Mr Huh in New Zealand courts on the $2.1 million court judgment, he appeared in court claiming he was unaware of the Korean court case and that the seal affixed to the agreement was not his; he did not owe Yoonwoo anything. Associate judge Bell dismissed the bankruptcy application; a full court hearing is needed to establish the validity of Yoonwoo’s claim against Mr Huh. Judge Bell stymied further evasive tactics; Mr Huh is to place on the court file details of his residential address and his lawyers are authorised to accept on his behalf service of all legal documents.
Yoonwoo C&C Development Corporation v. Huh – High Court (11.11.19)