Repaying a Loan: Can I Demand the Original IOU Back Immediately?

When repaying a debt, you are entitled to a receipt immediately, but the return of the original IOU follows a different rule.

Published on 04/17/2026, 16:152 min read0

Repaying a Loan: Can I Demand the Original IOU Back Immediately?

Background → A payer can demand a receipt under Article 474 of the Civil Act → A payer can demand return of the original debt instrument after full payment under Article 475 → What changes → ① Receipt is due at the time of payment → ② Payment and receipt are simultaneous obligations → ③ Pay the debt in full → ④ After full payment, demand return of the original IOU → ⑤ If the IOU is lost, request a formal receipt stating it is null and void → Who is affected? → Borrowers repaying a debt: obtain a receipt when paying; the original IOU is returnable after full payment. Its absence alone does not let you refuse payment. → Check the receipt has the date, amount, and confirmation the debt is fully settled → Check 1: Receipt details → If the IOU is lost, check the receipt says the document is null and void → Check 2: Lost IOU wording → Do not treat return of the original IOU as a condition for…

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Understanding Your Rights When Repaying a Loan in Korea

When you borrow money and the time comes to pay it back, you naturally want to ensure there is no future dispute. Many people believe they should only hand over the money if the lender returns the original IOU (promissory note) at the same time. However, Korean law distinguishes between a receipt and the original debt instrument.

1. The Right to a Receipt (Simultaneous Performance)

Under Article 474 of the Civil Act, a person who pays a debt has the right to demand a receipt from the lender.

Note: The obligation to pay the money and the obligation to issue a receipt are in a 'Simultaneous Performance' relationship. This means you can legally refuse to pay the money until the lender provides a receipt.

2. Returning the Original IOU (Post-Repayment)

Article 475 of the Civil Act states that if you have paid the debt in full, you can demand the return of the original debt instrument (such as an IOU or a written pledge).

However, the Supreme Court has ruled that returning the original IOU is not a simultaneous performance obligation. This means:

You must complete the payment first.

The lender is then obligated to return the document after the debt is settled.

Summary Table: Receipt vs. Original IOU

What if the Lender Lost the IOU?

If the lender, like in the case of 'Person B', has lost the original document, they cannot return it immediately. In this situation, you should:

Pay the amount due.

Strongly demand a formal receipt that includes the date, amount, and a statement that the debt is fully settled.

Include a note on the receipt stating that the original IOU is null and void since it has been lost.

Conclusion

You cannot refuse to pay just because the lender doesn't have the original IOU on hand. However, you MUST receive a receipt at the moment you pay. This receipt will serve as your primary protection against any future claims.

This information is for general guidance. For specific legal disputes, consulting with a qualified professional is recommended.

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Related Stories

Understanding Your Rights When Repaying a Loan in Korea

1. The Right to a Receipt (Simultaneous Performance)

2. Returning the Original IOU (Post-Repayment)

Summary Table: Receipt vs. Original IOU

What if the Lender Lost the IOU?

Conclusion

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