Damages

Damages (손해배상/損害賠償) are an award of money to be paid to a person as compensation for loss or injury. The rules for damages can and frequently do vary based on the type of claim which is presented (e.g., breach of contract versus a tort claim) and the jurisdiction.

At common law, damages are categorized into compensatory damages and punitive damages (징벌적 손해배상/懲罰的損害賠償).
 * Compensatory damages are further categorized into special damages, which are economic losses such as loss of earnings, property damage and medical expenses, and general damages, which are noneconomic damages such as pain and suffering and emotional distress.
 * Punitive damages: to be explained below

Key words
actual damages, consequential damages, special damages, punitive damages, liquidated damages

Actual damages
Actual damages, or compensatory damages, are paid to compensate the claimant for loss, injury, or harm suffered as a result of (see requirement of causation) another's breach of duty. (e.g., in a negligence claim under tort law). Expectation damages are used in contract law.

Consequential damages
Consequential damages (간접손해/間接損害) are presumably caused by an illegal act. But it is not clear whether such an illegal act directly caused the damages. So the claimant is required to prove the actual amount of damages and its causation.

It is usually called as "special damages" (특별손해/特別損害) which shall be compensated only when the defendant knew or ought to know the cause of damages. The difference between the actual damages and consequential damages are so obscure case by case that it depends on the individual situation.

Punitive damages
Generally, punitive damages, which are also termed exemplary damages in the United Kingdom, are not awarded in order to compensate the plaintiff, but in order to reform or deter the defendant and similar persons from pursuing a course of action such as that which damaged the plaintiff.

Punitive damages are awarded only in special cases where conduct was egregiously invidious and are over and above the amount of compensatory damages, such as in the event of malice or intent. Great judicial restraint is expected to be exercised in their application.

In Korea, punitive damages are stipulated on a limited basis by the Act for the Fairness of Sub-Contracts (하도급거래 공정화에 관한 법률/下都給法):
 * Usurpation of technologies from sub-contractors;
 * Improper pricing, unexpected withdrawal of orders and unfair cutback of proceeds to sub-contractors.

Liquidated damages
See Liquidated damages.