Corporate Rehabilitation and Bankruptcy
Restructuring, rehabilitation, bankruptcy, personal rehabilitation
Corporate Rehabilitation and Bankruptcy
When a business cannot meet its obligations, Korean law offers rehabilitation (court-supervised restructuring), bankruptcy, workouts with creditors and, for individuals, personal rehabilitation. Choosing the right procedure early preserves value for the company and its creditors.
We prepare and manage rehabilitation filings, represent debtors and creditors, negotiate workouts, and advise foreign-invested companies and their parent companies on Korean insolvency proceedings.
What we handle
Corporate rehabilitation filings
Bankruptcy filings
Personal rehabilitation
Creditor negotiations
Workouts
Corporate restructuring
Debt relief
What foreign nationals should know
A foreign parent company or investor is treated as a creditor or shareholder under Korean procedure. Its claims must be filed within the court's deadlines to be recognized.
Foreign nationals living in Korea can use personal rehabilitation or bankruptcy for debts incurred here. The court looks at income and assets in Korea.
Directors of a Korean subsidiary have duties in the run-up to insolvency. We advise on personal exposure.
Cross-border cases may require recognition of foreign proceedings in Korea, or of Korean proceedings abroad.
Frequently asked questions
Rehabilitation keeps the business running under a court-approved plan that restructures its debt. Bankruptcy liquidates the assets to pay creditors. The choice depends on whether the business can be viable.
From filing to plan approval commonly takes six months to a year. The plan itself is then performed over several years.
Yes, if you live in Korea and have regular income. The court adjusts payments to your means over three to five years. Bankruptcy is available for those without repayment capacity.
File your claim by the court's deadline, attend creditor meetings and vote on the plan. Late claims can be excluded.
This page provides general information about Korean law and is not legal advice. Outcomes depend on the facts of each case. Consultations are paid and are held in English or with an interpreter.