Letters of Credit and the Uniform Customs and Practice for Documentary Credits: The Negotiating Bank and the Fraud Rule in Korea

Authors

Dong-heon Chae

Abstract

The purpose of this article is to introduce a practical legal interpretation of the Korean Supreme Court’s position on fraud in letters of credit and to compare this position with the fraud rule in the United States. This article argues that the strong intention of the Korean Supreme Court to protect the innocent party in letter-of-credit transactions is prevailing over the general rule regarding letters of credit. It further states that this position is a more obvious and clearer expression of the fraud rule than that of common law countries.

Recommended Citation

Chae, Dong-heon (1998) "Letters of Credit and the Uniform Customs and Practice for Documentary Credits: The Negotiating Bank and the Fraud Rule in Korea," Florida Journal of International Law: Vol. 12: Iss. 1, Article 2.
Available at: https://scholarship.law.ufl.edu/fjil/vol12/iss1/2