Supreme Court Rehabilitation and Bankruptcy Committee Recommends "Establishment of Additional Rehabilitation Courts"

The Supreme Court's Rehabilitation and Bankruptcy Committee (Chairman Oh Su-geun) has recommended the establishment of additional rehabilitation courts.

At the 19th regular meeting held on the 21st at the Supreme Court building, the Rehabilitation and Bankruptcy Committee adopted a proposal stating, "To ensure the prompt, appropriate, and uniform handling of the rapidly increasing insolvency cases, we recommend the nationwide expansion of rehabilitation courts."

On the same day, the committee stated, "Due to the global economic downturn, the number of insolvency cases is sharply increasing," and requested, "Please prepare measures to expand the positive effects following the recent establishment of the Suwon and Busan Rehabilitation Courts."

They also said, "To shorten the procedures for corporate insolvency cases and to facilitate the efficient rehabilitation of corporate debtors, various measures should be prepared, including the improvement of the current restructuring procedures, linkage with support systems outside the court, revision of practical standards for compulsory approval, improvement of corporate rehabilitation procedures, and activation of communication and education among procedural participants within the courts handling corporate insolvency cases, all of which can help with debt adjustment and recovery of companies facing difficulties."

Currently, rehabilitation courts specializing in insolvency cases are located in three places: Seoul, Suwon, and Busan.

Park Su-yeon, Legal Times Reporter

※This article is based on content supplied by Law Times.