Implementation of the 'Goo Hara Act' and Introduction of Livelihood Protection Accounts: Legal Community Evaluates New Judicial Reforms in the New Year

[Financial News] As major judicial reforms take effect in the new year of 2026, the legal community is generally expressing positive views, while also noting the need for further improvements. Notable changes include the so-called 'Goo Hara Act,' which restricts inheritance rights for parents who fail to fulfill their childcare obligations, and the 'Livelihood Protection Account' system, designed to guarantee a minimum standard of living for debtors.
According to the legal community on the 1st, the 'Goo Hara Act' (Article 1004-2 of the Civil Act), which took effect that day, allows for the disqualification of inheritance rights for parents or other direct ascendants if they have: △ seriously neglected their duty of support while the child was a minor; △ committed a serious crime against the child, their spouse, or their children; or △ treated the child in a grossly unfair manner.
A child may declare the intention to disqualify a parent’s inheritance rights in a will during their lifetime. Even in the absence of a will, other co-heirs may petition the court to revoke the inheritance rights within six months of becoming aware of the relevant facts.
The Goo Hara Act was introduced to address cases where parents who neglected or abused their children were able to inherit without restriction after the child's death. The legal community views this measure as a step toward reinforcing responsibility within family relationships and establishing fairness in inheritance. The law is also considered effective, as it reflects real-world scenarios such as repeated neglect and abuse.
However, there are concerns that ambiguous cases, such as partial fulfillment of support obligations, will need to be clarified through future court rulings.
No Jong-eon, an attorney at JONJE Law Firm, remarked, "Typically, cases where parents who have abandoned their children claim inheritance rights will decrease." He added, "However, in situations where some child support was paid or where abuse is not clearly established, the courts will need to develop clear standards for judgment."
The Livelihood Protection Account system, set to take effect on February 1, is also drawing attention. Under the revised Civil Execution Act, debtors may designate one Livelihood Protection Account across all financial institutions, and this account is protected from seizure. Deposits in this account are limited to a maximum of 2.5 million won per month.
Previously, because account balances were dispersed across different financial institutions, disputes frequently arose over whether funds qualified as living expenses after seizure. The new system is expected to reduce such confusion. In particular, the increase in the protected amount from 1.85 million won to 2.5 million won is seen as a more realistic reflection of living costs.
Lee Sabek, an attorney at Saebyeol Law Firm, stated, "Raising the standard for living expenses will help debtors maintain a minimum standard of living." He continued, "For creditors, it will also reduce confusion in processing, as it has been difficult to accurately determine a debtor’s total deposits at each financial institution."
However, concerns remain. There is a view that future discussions on further raising the living expense standard should proceed with caution. No Jong-eon noted, "This is an appropriate measure considering inflation," but warned, "If the standard is raised without limit, it could hinder creditors’ ability to recover debts in a credit-based society."
The Court Record Viewing and Copy Reservation Application System will also be fully implemented starting in February. As advance applications by email become possible, the inconvenience of having to visit the court multiple times to view records is expected to decrease. However, practitioners point out that the system still relies heavily on paper records, highlighting the need to expand electronic documentation.
Lee Sabek commented, "The current method of copying records page by page still persists and requires significant improvement." He suggested allowing the issuance of printouts, rather than only copies, in cases where this is feasible.
scottchoi15@fnnews.com Choi Eun-sol Reporter