Restructuring innovates in Asia

Author: Karry Lai | Published: 26 Sep 2019

In this morning’s session Hot topics and recent trends in corporate restructuring in Asia at the International Bar Association’s annual conference in Seoul, panellists from Korea, Japan and Singapore discussed the latest changes and innovations in their jurisdictions to make it easier for struggling businesses to restructure.

According to Hon. June Young Chung from the Seoul High Court, Korea has seen an increase in corporate restructuring since the Bankruptcy Act came into effect in 2006. Cases skyrocketed from 76 in 2006 to 980 in 2017. "The rise in the number of cases is due to an increase in market confidence in judicial proceedings, better insolvency legislation, and innovative approaches by the courts," said Chung.

Many businesses went bankrupt when Korea suffered the financial crisis in 1997, but most opted...