Republic of Korea: Financial Sector Assessment Program-Technical Note-Insolvency and Creditor Rights
IMF Staff Country Reports, September 18, 2020
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- Republic of Korea: Financial Sector Assessment Program-Technical Note-Insolvency and Creditor Rights
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Bibliographic details
- Published: September 18, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513556987.002
Overview
- The Korean insolvency and creditor rights framework is complex and has undergone several reforms in recent years.
- Consistent efforts to enhance the efficiency and effectiveness of the insolvency system have been made since the Asian crisis by the multiple government agencies that oversee the functioning of the insolvency framework in Korea.
- This note summarizes the key findings of the analysis of select aspects of the Korean insolvency and creditor rights system against the international standard.
- The framework for personal insolvency is also discussed (See Annex), but its analysis is not prescriptive, as there are no international best practices in this area.
Key findings (as summarized by the note)
- Complexity of the insolvency and creditor rights framework remains a defining characteristic.
- Multiple government agencies have been involved in reform efforts since the Asian crisis to improve efficiency and effectiveness.
- The analysis benchmarks select aspects of Korea’s insolvency and creditor rights system against the international standard.
- Personal insolvency is discussed in an Annex; the note does not make prescriptive judgments for personal insolvency due to the absence of international best practices.
Subject areas and keywords
- Subject: Asset and liability management; Banking; Corporate insolvency; Debt restructuring; Economic sectors; Financial crises; Financial sector policy and analysis; Small and medium enterprises; Solvency
- Keywords: Corporate insolvency; CR; creditor coordination; Debt restructuring; debtor corporation; enterprise Group insolvency; financing agreement; insolvency administrator; insolvency court; insolvency framework; insolvency judge; insolvency petition; ISCR; reorganization procedure; Small and medium enterprises; Solvency
Content in this bundle
- Executive Summary