The Seoul Bankruptcy Court announced on the 9th that it signed a "Business Agreement to Support the Successful Restart of Companies with Early Termination of Rehabilitation Procedures" with the Korea Credit Guarantee Fund on the 6th.
Ahn Byung-wook, Chief Judge of Seoul Rehabilitation Court (left), and Choi Won-mok, Chairman of the Korea Credit Guarantee Fund, are posing for a commemorative photo after signing a business agreement at the Seoul Rehabilitation Court on the 6th. [Photo by Seoul Rehabilitation Court]
This agreement was established to support guarantees such as new working capital loans necessary for production and business activities, enabling debtors who have completed rehabilitation procedures to engage in normal economic activities.
Through the agreement, the Bankruptcy Court recommends companies undergoing rehabilitation procedures as candidates for guarantee support. The Korea Credit Guarantee Fund reviews whether they qualify for the Rechallenge and Restart Support Guarantee, grants preliminary approval if criteria are met, and submits a confirmation letter to the court.
If a company receiving preliminary approval meets conditions such as early termination of rehabilitation procedures and repayment of at least 25% of the scheduled repayment amount, the Korea Credit Guarantee Fund provides support for the remaining debt repayment and new funds after a final review. A maximum guarantee ratio of 100% is applied, and the guarantee fee rate is preferentially set within 1.2%.
Seoul Bankruptcy Court Chief Judge Ahn Byung-wook stated, “Even debtors who have successfully completed rehabilitation procedures have found it difficult to obtain sufficient new loans from financial institutions simply because they are rehabilitation companies,” adding, “The Korea Credit Guarantee Fund’s ‘Rechallenge and Restart Support Guarantee’ program will greatly help debtors’ swift credit recovery and economic restart.”
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