1. The defendant's order of payment for loans against the plaintiff was based on the Ulsan District Court 2013j 4521.

Article 505(2) of the former Civil Procedure Act (amended by Act No. 6626 of Jan. 26, 2002) provides that an objection to a claim against a final and conclusive judgment may be raised only when the cause of the objection arises after the closing of argument. However, Article 521(2) of the same Act provides that an objection to a claim against a payment order does not comply with the restriction under Article 505 of the same Act. Thus, in a lawsuit seeking objection against a payment order, not only the grounds for extinguishing the claim after the issuance of the payment order, but also the failure or invalidation of the claim before the issuance of the payment order, etc. are also grounds for objection.

On the other hand, Article 474 of the current Civil Procedure Act provides that an order for final and conclusive payment shall have the same effect as a final and conclusive judgment. However, unlike Article 44(2) of the Civil Execution Act, Article 58(3) of the Civil Execution Act provides that the above Article 44(2) shall not apply to the assertion of objection against a claim against a payment order, which restricts the grounds for objection against a final and conclusive judgment to be incurred after the closure of pleadings (in the case of a judgment without holding any pleadings, after the judgment was rendered). Thus, even in the payment order under the current Civil Procedure Act, the grounds for failure or invalidation of a claim arising prior to the issuance of a payment order

In this sense, res judicata is not recognized in the payment order under the current Civil Procedure Act as well as the former Civil Procedure Act.

(see, e.g., Supreme Court Decision 2006Da73966, Jul. 9, 2009). In addition, in the case of a final and conclusive payment order, the grounds for failure or invalidation, etc. arising prior to the issuance of the payment order may be asserted in a lawsuit of objection against the payment order (see, e.g., Articles 58(3) and 44(2) of the Civil Execution Act).