CORPORATE RESTRUCTURING PROMOTION ACT

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to facilitate constant corporate restructuring and promote the stabilization of financial markets and the development of the national economy, by providing for matters necessary to promptly and efficiently implement corporate improvement of enterprises with signs of insolvency.

Article 2(Definitions) #

The terms used in this Act are defined as follows:

1. The term "financial claim" means a claim that can be exercised against an enterprise with respect to a credit provided to the enterprise or to a third party;

2. The term "financial creditor" means a person who has a financial claim;

3. The term "creditor financial institution" means a person specified by Presidential Decree from among the institutions under Article 38 of the Act on the Establishment of Financial Services Commission and other institutions that engage in financial business or corporate restructuring pursuant to any Act;

4. The term "creditor bank" means a financial institution that engages in banking business regularly and systematically, among financial creditors;

5. The term "principal creditor bank" means the principal creditor bank of the relevant enterprise (or the bank that has provided the greatest amount of credit, if no principal creditor bank exists). In such cases, matters concerning the selection, change, etc. of a principal creditor bank shall be prescribed by Presidential Decree;

6. The term "enterprise" means a company defined in the Commercial Act or any other person who engages in profit-making activities; provided, the following persons shall be excluded herefrom:

(a) A public institution defined in the Act on the Management of Public Institutions;

(b) A financial company or a person specified by Presidential Decree, among other persons who engage in financial business;

(d) A person specified by Presidential Decree from among other persons excluded from those subject to credit risk assessment under Article 4 (4);

CORPORATE RESTRUCTURING PROMOTION ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Relationship to other Acts) #

Article 4(Credit risk assessment) #

Article 5(Notification of results of credit risk assessment) #

Article 6(Objection to results of credit risk assessment) #

Article 7(Monitoring of enterprises with signs of insolvency) #

Article 8(Joint administrative proceeding by council of financial creditors) #

Article 9(Convening of council for commencement of joint administrative proceeding) #

Article 10(Request for providing data) #

Article 11(Commencement of joint administrative proceeding) #

Article 12(Due diligence review on assets and liabilities) #

Article 13(Formulation of corporate improvement plan) #

Article 14(Agreement on implementation of corporate improvement plan) #

Article 15(Inspection of implementation of agreements) #

Article 16(Evaluation of joint administrative proceeding and disclosure thereof) #

Article 17(Claim adjustment) #

Article 18(New credit provided) #

Article 19(Interruption of joint administrative proceedings) #

Article 20(Closing of joint administrative proceedings) #

Article 21(Administrative proceeding by principal creditor bank) #

Article 22(Council of financial creditors) #

Article 23(Business affairs of council) #

Article 24(Methods of resolution of council) #

Article 25(Lawsuit for cancellation of resolution of council) #

Article 26(Reporting of financial claims) #

Article 27(Dissenting creditors' right to claim purchase of claims) #

Article 28(Compliance with resolutions of council) #

Article 29(Mediation committee of financial creditors) #

Article 30(Ombudsman committee for enterprises with signs of insolvency) #

Article 31(Petition for mediation) #

Article 32(Mediation decision) #

Article 33(Special cases concerning restriction on investment and asset management) #

Article 34(Special cases concerning immunity from responsibility of creditor financial institutions) #

Article 35(Corrective measures to creditor financial institutions) #

Article 36(Administrative fines) #