Tensions hit fever pitch as doctors hold mass street rally
Marriages in Korea fall by 40% within a decade
[KH explains] Why is S. Korea mulling ease on marriage ban between blood relatives?
Govt. takes steps to suspend licenses of some 7,000 defiant trainee doctors
Global tech titans rush to visit Seoul to win AI leadership
[From the Scene] Day of Rage: Doctors resist pressure to bend
40% of Korea's female workers say they were paid less due to their gender
[Herald Review] ‘My Name is Loh Kiwan’ a weak drama with soppy ending
Top 0.1% of Korea's employees averaged 685m won each in yearly bonuses: report
[Exclusive] Singaporean businessman David Yong to establish K-pop label in S. Korea this year
Finance minister calls for reenactment of corporate restructuring actBy Yonhap
Published : Nov. 15, 2023 - 10:05
Finance Minister Choo Kyung-ho called on the National Assembly on Wednesday to reenact the now-defunct corporate restructuring act that makes it easier for insolvent companies to begin an out-of-court debt restructuring program.
The Corporate Restructuring Promotion Act was legislated in 2001 with a sunset provision after South Korea was hit by the 1997-98 Asian financial crisis and had been extended five times before expiring last month.
It allows an insolvent company to start a debt workout program if more than 75 percent of creditors agree to the program, rather than requiring mandatory consent from all creditors.
"The removal of the management normalization means would cause companies to lose the chance of a timely, effective restructuring while suffering from a temporary crisis. It is also feared to make other smaller affiliates insolvent," Choo said during an emergency economic ministers' meeting in Seoul.
Companies have been suffering from managerial difficulties amid uncertainties at home and abroad, and the reenactment of the act is needed to put struggling firms back on track in a swift manner, he added.
Two lawmakers presented a revision to the act, but their deliberation has been postponed.
During the first half of the year, 724 companies filed for bankruptcy, up 60.2 percent from a year earlier, government data showed. (Yonhap)
[Election 2024] How will general election outcome play out for Yoon?
Seoul starts to suspend license of 7,000 unreturned doctors
Mainstream factions dominate as election candidates