A COMPARATIVE STUDY ON LEGISLATION OF HYPOTHECATION IN KOREA AND MONGOLIA

Abstract

This paper briefly reviews the hypothecation law through improved legal and institutional support. The paper examines the weaknesses of substantive law in Mongolia relates to immovable property financing. The paper outlines concrete policies that would improve the legal climate for real estate law. The paper contains a draft proposal that might be used to develop a legislative expression necessary to bring Mongolian law to 21st century commercial realities. There is no effort here to pretend that deficient law is the only obstacle to enjoy economic rights in all ways. Quality performance by courts is necessary for enforcement of property rights. In fact, creditors often assert that enforcement is the problem, not the law.

This paper disagrees with that assertion. Substantive law is a problem. It is true that the best law will be of little use to creditors if it is not enforced or if it is improperly enforced. But it is equally true that perfect enforcement machinery would be useless to creditors if policy toward hypothecation remains opposed to the needs of modern commerce, expressed in anachronistic rules interpreted by those whose hands are tied by misguided and inconsistent rulings of the past. To overcome this problem legislation of Korea which is advanced in new market society will be helpful guide and therefore concerned legislation of Korea will be considered in this paper.