Supreme Court Rehabilitation and Bankruptcy Committee Recommends Measures to Minimize Damage to Individual Insolvent Tenants

The Supreme Court Rehabilitation and Bankruptcy Committee (Chairman Oh Su-geun) has recommended establishing measures to minimize the damage to tenants when landlords undergo personal insolvency.

Supreme Court building.

On the 26th, the Rehabilitation and Bankruptcy Committee adopted a proposal containing these contents at the 20th regular meeting held at the Supreme Court.

The committee stated, “We recommend conducting multifaceted research on necessary countermeasures to ensure that mechanisms minimizing damage to tenant creditors are in place, such as determining appropriate liquidation methods or rights realization methods reflecting the current real estate market conditions.”

It pointed out that situations may arise where tenants are forced to reside for extended periods without recovering their lease deposit or where the dischargeability of lease deposit return obligations becomes an issue.

Furthermore, the Rehabilitation and Bankruptcy Committee recommended studying ways to establish the court’s role in debt adjustment procedures under the Corporate Restructuring Promotion Act and to explore appropriate court involvement in corporate restructuring procedures, aiming to maximize procedural advantages and linkage efficiency.

Meanwhile, at the meeting, the committee received reports on the current status of court insolvency practices, the 2023 nationwide court insolvency procedure stakeholder performance evaluation results, and follow-up measures on previously resolved Rehabilitation and Bankruptcy Committee agenda items.