[Invest&Law] Notarization Faces Extinction Threat... Decreased by 47% in 10 Years

Recognition of Electronic Documents as Evidence Due to IT Advancements
Decrease in Contracts Amid Economic Downturn
Need to Adjust Notary Fees and Expand Electronic Notarization

'Gongjeung (公證)' is an effective legal safeguard that prevents disputes in advance. However, the number of notarizations has steadily decreased over the past decade. With the emergence of several alternative notarization services utilizing IT technology, some analyses suggest that "the notarization system itself has reached the end of its lifespan." On the other hand, there are calls to improve the quality of notarization services by reorganizing electronic and video notarization systems in line with the popularization of non-face-to-face services and by adjusting notary fees to reflect reality.

When various contracts, agreements, memorandums, or statements are notarized, they can be used as strong evidence in civil, criminal, and family court trials. If promissory notes or loan agreements are drafted as notarized public documents, creditors can enforce claims immediately without going through a trial if the debtor fails to repay. Notarizing a will can also prevent inheritance disputes.

According to the Legal Yearbook and the Korea Notary Association, the total number of notarizations processed, which was 3,758,294 in 2015, dropped to 1,993,310 in 2024, falling below 2 million cases annually. Compared to 2015, the number of notarizations in 2024 decreased by 47%.

The main reasons for the sharp decline in notarizations are the economic recession following COVID-19 and the emergence of alternative services due to IT advancements. As the economic downturn prolonged, the number of contracts themselves decreased, and as face-to-face activities became difficult, notarization requests naturally declined. With the advancement of IT technology, conversations and original document files exchanged between parties are stored in real-time on electronic devices and servers, and such materials are recognized as evidence in lawsuits, eliminating the need for notarization.

Overseas, various systems have been introduced to promote electronic and video notarization. In the United States, three types of electronic notarizations are operated: 'In-Person Electronic Notarization (IPEN),' which uses electronic signatures on electronic documents instead of pen and paper; 'Remote Ink Notarization (RIN),' which notarizes signatures made with pen and ink on paper documents during video conferences; and 'Remote Online Notarization (RON),' which involves signing electronic documents via video. In the U.S., private companies also provide electronic notarization services. The service types are diverse, including certified mail, timestamp verification, delivery confirmation, legal electronic storage, message data certification, and electronic signature verification.

To revitalize notarization and improve access to notarization services, there are calls to increase the number of notaries, which has remained unchanged for 15 years. According to the Korea Notary Association, as of April 2024, there are 84 'appointed notaries' dedicated to notarization work and 893 lawyers working as notaries in authorized notary law firms and legal offices.

Hong Yoonji, Reporter for Legal Newspaper

※This article is based on content supplied by Law Times.