South Korea is facing a wave of new challenges as its population ages and unprecedented sums of wealth are transferred between generations. With an estimated 4,300 trillion KRW in senior citizens’ assets now moving to their children, the stakes for families—and the potential for conflict—have never been higher, according to KBS and other leading Korean media outlets. Yet, as more people try to secure their financial futures, a mix of internet scams, legal pitfalls, and inheritance disputes threaten to unravel even the most carefully laid plans.
On April 6, 2026, a case that gripped the nation was featured on YTN Radio’s legal advice program. A wife, identified only as Ms. A, recounted how her husband lost a staggering 100 million KRW—including 50 million KRW from his retirement fund and another 50 million borrowed from his mother—in an internet scam masquerading as an AI-powered investment platform. The couple’s ordeal began innocently enough: after seeing modest returns from a small initial investment, the husband was lured into sending ever larger sums to the scammer. Now, faced with insurmountable debt, he’s considering personal bankruptcy.
“If a spouse uses a large amount of money without consultation and jeopardizes the family’s livelihood, it can be grounds for divorce due to broken trust,” explained attorney Lim Kyung-mi of Shinsegye Law Firm, as quoted by Newsis. “If the conflict between spouses continues to the point where maintaining the marriage is difficult, judicial divorce may be possible.”
But what about recourse for victims? According to Lim, the first step is to report the fraud to the police and get a written record of the report. Next, victims should file for payment suspension on the scammer’s account through the Financial Supervisory Service. If the scammer objects, a lawsuit for unjust enrichment must be filed within 90 days to keep the account frozen. If there’s no objection, any remaining funds may be recovered in proportion to the victim’s losses.
Lim also clarified a crucial point about South Korea’s property system: “Because the country follows the principle of separate property between spouses, a husband’s personal bankruptcy does not affect the wife’s assets.” However, she warned that if a couple divorces solely to shield assets from creditors and transfers wealth under false pretenses, the courts have the power to reverse such transfers. “The court can cancel a transfer of assets to a spouse if there’s no legitimate reason for divorce,” she noted. “Such transfers are unlikely to be recognized as proper division of property.”
While scams and financial missteps can devastate families, inheritance disputes are also on the rise—often more dramatic than anything on television. KBS recently highlighted the growing number of legal battles among heirs, especially as the so-called “senior money” passes from baby boomers to their children. Legal experts warn that the way assets are passed down can spark fierce conflicts, sometimes pitting siblings against each other in protracted court fights.
Attorney Chae Ae-ri, an inheritance specialist, told KBS, “Many parents write wills intending to give more to one child, but this often leads to lawsuits from children who feel left out. They might claim the will is invalid or file a claim for their compulsory share.” Under South Korean law, heirs can demand half of their legal share even if a will says otherwise. “If you want to distribute assets unequally, it’s still better to write a will,” Chae said. “Without one, all assets are divided according to statutory shares.”
The legal landscape for inheritance is also evolving. The 2026 amendment to the Civil Act, known as the “Goo Hara Law,” introduces the possibility of disinheriting heirs who have committed egregious acts against the deceased. It also excludes from compulsory inheritance claims any assets given to heirs who made significant contributions to building or maintaining the estate. “If an heir has committed serious misconduct, the will should specify this, so the executor can file for disinheritance,” Chae advised. “Likewise, if you wish to reward an heir for extraordinary support or contributions, those details should be written in the will.”
But how should a will be written to avoid legal headaches? South Korean law recognizes five types: notarized will, handwritten will, audio-recorded will, secret document will, and oral will. The most common, according to Chae, are handwritten and notarized wills, though audio-recorded wills are gaining popularity as technology advances.
Handwritten wills must be written entirely by the testator, including the date, address, name, and a seal or stamp. “Signatures alone are not valid,” Chae emphasized. “If someone writes the will but only signs it without a seal, it’s invalid.” Even small mistakes—like using a computer to draft the will, or having a child write it on the parent’s behalf—can render the document void. The details matter: for real estate, the address must be precise, down to the building and unit number for apartments or the lot number for land. Vague terms like “the upper two-thirds of the mountain” can cause confusion and may invalidate the will.
Audio-recorded wills are also permitted, but they require a witness. The testator must state their name, the date, and the contents of the will, after which the witness must confirm the accuracy of the recording. “You can’t do it alone,” Chae explained. “A witness must be present and their name and confirmation must be included.”
Contrary to popular belief, notarization isn’t always necessary for handwritten or audio wills. What matters most is that the will meets all legal requirements. “Even if you notarize a will that doesn’t include the required elements, it’s still invalid,” Chae warned.
For those worried about changing circumstances, there’s good news: wills can be updated as many times as needed. “You can write ten or a hundred wills—only the last one is valid,” Chae said. “The timing doesn’t matter; what counts is the most recent version.”
With so much at stake, legal experts urge families to communicate openly and prepare carefully. The massive transfer of wealth underway in South Korea is an opportunity for many, but it’s also a minefield for the unprepared. As scams proliferate and inheritance battles intensify, the importance of sound legal advice—and a dose of caution—has never been clearer.
Whether navigating the fallout from an internet scam or drafting a will to avoid family strife, South Koreans are learning that protecting their assets is as much about trust and transparency as it is about paperwork.