The 'corporate bankruptcy' threshold will be lowered...Relaxation of the standard for payment of deposit

The standard for deposit payments, which must be made to courts to make bankruptcy proceedings easier for companies, has been relaxed.

The Seoul Rehabilitation Court announced today (14th) that it will partially revise and implement the corporate bankruptcy pre-payment standards.

The new deposit payment standard was unified to 5 million won, although companies with a total debt of less than 10 billion won had to pay up to 15 million won.

Companies with debts of more than 10 billion won have also been lowered from 20 million won to less than 15 million won.

The rehabilitation court explained that the revision was made in consideration of cases where bankrupt companies with large debts but few assets cannot use bankruptcy procedures due to the burden of deposit.

If a company goes into corporate bankruptcy proceedings, it can escape the individual demand for repayment by creditors.