This study explores measures to improve institutions concerning corporate insolvency, based on the understanding that in the wake of the financial crisis in 1997, a major reform is critical in the financial sector as well as in handling insolvent companies
After the economic meltdown in 1997—despite restructuring efforts such as massive injections of public funds—the issue of insolvency of financial institutions and corporations was not solved, due in part to companies’ excessive investment compared to their profitability, as well as their high leveraging. Delays in addressing corporate insolvency is worsening the situation in the financial sector.
Since the insolvency of the financial sector stems from corporate insolvency, normalizing the financial sector cannot be achieved without a major restructuring effort on the companies’ part. At the same time, injecting public funds into the financial sector without solving corporate insolvency may not be effective, and therefore it is critical that more active measures be implemented to tackle corporate insolvency, for example: by improving corporate insolvency management systems and evaluation methods, establishing systematic public fund management, and securing ample public funding.
기업부실과 구조조정 정책방향의 재정립(Reestablishment of policy directions for corporate insolvency and restructuring)
|Series Title; No||정책연구시리즈 / 2000-01|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Entrepreneurship|
|Holding||KDI; KDI School|