‘Insol International’ Seoul Seminar
Insolvency experts from around the world gathered in Seoul to discuss global trends and practical systems related to insolvency cases. Amid an increase in corporate and personal bankruptcy filings in various countries including Korea following the COVID-19 pandemic, discussions were held on the current status of insolvency cases and solutions.
INSOL International held the ‘Seoul Seminar’ on the 7th at the Lotte Hotel in Sogong-dong, Jung-gu, Seoul. INSOL is an international academic federation composed of insolvency experts such as lawyers and accountants from various countries. Currently, more than 10,000 experts are active members.
'Insol International' held the 'Seoul Seminar' on the 7th at Lotte Hotel, Sogong-dong, Jung-gu, Seoul. Insol is an international academic association composed of insolvency experts from various countries, including lawyers and accountants. [Image source=Legal Times]
"Debtors Should Be Able to Use It Easily"
At the keynote speech, Byeongwook Ahn (57, Judicial Research and Training Institute class 26), Chief Judge of the Seoul Bankruptcy Court, introduced the practical aspects of insolvency cases in Korea and presented directions for improvement under the theme ‘Current Status and Improvement Directions of Korean Insolvency Practice.’
Chief Judge Ahn explained, “The Seoul Bankruptcy Court, Suwon Bankruptcy Court, and Busan Bankruptcy Court account for 65% of all corporate insolvency cases and 50% of personal cases,” adding, “Since its opening, the Seoul Bankruptcy Court has entered a stabilization phase by preparing pre-planned submissions and voluntary restructuring support programs.”
He also emphasized that efforts are focused on establishing systems that support the practical rehabilitation and recovery of debtors. He said, “Previously, individual debtors had to submit as many as 29 types of documents to the court when applying for personal insolvency, but this was simplified through amendments to the Supreme Court rules at the end of 2019.”
Regarding future directions for system improvement, Chief Judge Ahn stated, “Although insolvency cases have increased, only a portion of debtors are utilizing insolvency procedures,” and added, “Debtors should be able to use the system easily.” He further noted, “The Seoul Bankruptcy Court plans to reduce the advance payment required for corporate bankruptcy and introduce litigation support,” expressing expectations that “lowering costs will enable many companies to use corporate bankruptcy procedures.”
Effective Corporate Workout Strategies...
In the afternoon session, presentations and discussions continued under the theme ‘Beyond the Courtroom: Exploring Effective Corporate Workout Strategies’ focusing on the efficiency of workouts.
Jaeha Lee (39, 4th Bar Exam), a lawyer at Sejong Law Firm, stated, “Workout is a creditor-led restructuring method, which has the advantage of enhancing efficiency,” and added, “Especially, construction companies in financial distress prefer workouts because they can continue operating their business while undergoing restructuring.”
On the other hand, Jiwoong Lim (50, class 27), a lawyer at Kwangjang Law Firm, said, “Workouts were actively used until 2012 after the IMF financial crisis, but recently there have been almost no workout cases,” and noted, “Financial institutions still worry about government influence during the workout process.”
Reporters Suhyun Han and Jinyoung Lee, Legal Times
※This article is based on content supplied by Law Times.
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