Contract Interpretation under Korean Law
This chapter examines two closely connected issues in defining the contents of contracts in Korea: first, the approaches adopted in interpreting the meaning of agreed contractual terms and, second, the extent to which additional terms are implied to supplement the express terms. It discusses the underlying philosophy of interpretation with regard to the dichotomy of ‘objective’ and ‘subjective’ approaches; it details the various interpretative aids, such as customs, usages, the commercial background, the negotiations of the parties, subsequent conduct, and good faith; and it shows how Korean law resolves the tension between literalist and contextualist approaches to interpretation. A number of hypothetical scenarios illustrate how Korean courts deal with issues of contractual interpretation and gap-filling in practice.