[Law Firm Now] Law Firm YK Opens 'Aging Society and Law Research Institute'... Symposium Held

Entering a Super-Aged Society Soon
"Legal System Improvements Needed for Asset Protection and Support"
Ensuring Stable Old Age through Trusts, Adult Guardianship, and Support Contracts

Law Firm YK (Representative Attorneys Kang Kyung-hoon and Kim Beom-han) has established the "Aging Society and Law Research Institute" and held its first symposium.

With South Korea on the verge of entering a super-aged society where over 20% of the total population is aged 65 or older, there is an urgent call for legal system improvements to address the protection of the elderly's assets and their support issues.

Professor Seo Jong-hee of Yonsei University Law School, Professor Han So-hye of Sungkyunkwan University Law School, Professor Park In-hwan of Inha University Law School, and Bae In-gu, Chief Attorney at Law Firm YK and Director of the Aging Society and Law Research Institute (from left), who participated as speakers at the symposium held at Law Firm YK Gangnam Main Office on the 30th of last month. Photo by Law Firm YK

According to the legal community on the 1st, at the symposium held the previous day at Law Firm YK’s Gangnam main office to commemorate the opening of the "Aging Society and Law Research Institute," experts emphasized that legal mechanisms, including trust systems and guardianship contracts, will be essential means to supplement the economic and physical vulnerabilities of the elderly and ensure a stable old age.

Currently, there is a lack of legal measures to protect the assets of the elderly, and the existing inheritance and asset management systems do not sufficiently guarantee a stable life for the elderly, highlighting the need to strengthen legal protections promptly.

Professor Park In-hwan of Inha University Law School (hereinafter Law School) stated, “The assets of the elderly are not merely for passing down wealth but serve as their economic safety net.” He argued, “It is necessary to respect and protect the decision-making rights of the elderly through adult guardianship systems and guardianship contracts.”

He added, “Because the elderly are highly susceptible to undue influence due to economic and physical vulnerabilities, legal protection through guardians is also essential.”

Professor Park also introduced English law, where a testator must make a valid will free from fear of heirs or hopes for the future, and where undue pressure can be recognized if the testator makes a will to avoid heirs’ persistence, threats, or uncomfortable relationships. He said, “This perspective will provide important implications for our judgment on testamentary capacity.”

Professor Hyun So-hye of Sungkyunkwan University Law School argued that the importance of support contracts (so-called filial contracts), which help protect the elderly’s assets and ensure stable support, is also increasing. Professor Hyun emphasized, “The elderly, who must constantly engage in a tug-of-war with one foot in life and the other in death, like those awaiting indefinitely postponed executions, are the most vulnerable and need someone to rely on. Support contracts, which rely on relationships rather than assets, play a crucial role in guaranteeing stable support for the elderly.”

Professor Hyun proposed two specific methods: immediate transfer-type support contracts and future transfer-type support contracts. The immediate transfer-type support contract involves the elderly transferring assets to the recipient in exchange for support. The future transfer-type support contract involves the obligor fulfilling the support duty throughout their lifetime and then receiving the property rights. Through these, elderly individuals can secure stable support, according to Professor Hyun.

The trust system was presented as a way to safely protect the assets of the elderly. The trust system allows a support obligor to manage and protect the elderly’s assets on their behalf even when the elderly cannot manage their own property.

Professor Seo Jong-hee of Yonsei University Law School stated, “The trust system is very important to ensure that the assets of the elderly are safely protected from family disputes,” adding, “It is a key tool to guarantee the economic independence and stable old age of the elderly.”

He emphasized, “By legally protecting the elderly’s assets through the trust system, not only can inheritance disputes be prevented, but the elderly’s assets can also be managed more stably.”

Baek In-gu, representative attorney of YK and director of the Aging Society and Law Research Institute, who hosted the symposium, stressed that improving legal systems to solve the issues of asset protection and support for the elderly in an aging society is an urgent task that can no longer be postponed.

The symposium was attended by many external scholars and experts, including Professor Emeritus Yoon Jin-soo of Seoul National University, Kwak Bae-hee, director of the Korea Family Law Counseling Center, and Jeon Kyung-geun, president of the Korean Family Law Association and professor at Ajou University Law School.