English-Speaking Lawyers in Korea | Eslk.co.kr
Blog

Korean business law - bankruptcy to rehabilitation

페이지 정보

작성자 최고관리자 댓글 0건 조회 182회 작성일 19-01-26 14:19

본문

When you start your business, you start with aspirations, but sometimes things do not work out. We will continue our business with the idea that if we stay only this time, if there is a little more, the situation will get better. The number of companies that start business every year is increasing, but as many businesses are closed and the corporate regeneration process is carried out. The corporate rehabilitation process is not limited to small companies. Big companies can also take the rehabilitation process in a moment.

Application for corporate rehabilitation
If a corporation falls into a financial crisis, it will be the best way to give the company a chance to happen again. In case of corporation regeneration If you think that the value is greater than the value when the business is liquidated, it means regulating the legal relationship and regenerating the corporation under court supervision. So, to start the corporate rehabilitation process, you have to apply first?
If the company can not redeem the debtors in the debtor without resorting to disruption in continuing the business, it can apply only for the debtor. If there is concern about the fact that the bankruptcy is occurring, the debtor, creditor, This is possible.
If the applicant finds that there is a reason for the initiation of the application, or if there is no reason for the rejection, the court will issue a decision to commence the rehabilitation proceedings. The decision will be made to the creditor, and then the creditor will not be able to receive the reimbursement unless he / she proceeds in principle to the plan.

Why do we need a corporate revival?
As I mentioned above, if you continue to benefit from the business more than to quit the business, it will be disadvantageous to the creditor in the short term, but in the long run it will benefit the company, the creditor, and the national economy. In addition, we can protect the loss of human resources and management know-how with keeping company's management. The corporate rehabilitation process differs from the way in which employees are dispatched directly from a bank, other than a third party designated by the court, to manage the funds.

What if it's not a corporation?
If the debtor is not a corporation, you can proceed with the simple procedure using the "personal regeneration procedure." (The corporation has the burden of having to follow strict procedures even if the debt is small.) To solve these problems, Has been amended from 2015. This law is very useful for self-employed persons, small business owners, and small and medium-sized companies to conduct simple meetings at a low cost.
The application condition must be that the debt is less than 3 billion, and the sales income earner has not been indemnified by personal rehabilitation or bankruptcy proceedings within 5 years before the application date.

Contact a lawyer first
It is also a good idea to borrow the power of the law to pass the current crisis. However, it is not the only thing to avoid the crisis, so it is better to go through the consultation with the lawyer. It is advisable to proceed to the favorable side through counseling with the lawyer, whether to go through the procedure or to shut down here.

#Koreanbusinesslaw #rehabilitation #bankruptcy