In Korea, there are three main bankruptcy proceedings: the composition (according to the Composition Act), the liquidation (according to the Bankruptcy Act) and corporate reorganization (according to the Corporate Reorganization Act). In this article, our company formation advisors in Korea analyze different aspects related to how to close a company in Korea.
You can also contact our specialists for assistance in immigration to Korea.
Bankruptcy proceedings in Korea
A secured creditor is able to enjoy rights in connection to its security interest at whichever moment prior to, during or after a bankruptcy process in this country.
Any sales proceedings of the assets which are subject to security interests can be distributed to the appropriately secured creditors and any remaining proceeds after this distribution are comprised in the bankruptcy estate.
The priority order among creditors is:
• Estate claims: these represent claims for expenses and expenditures which are required for the implementation of the bankruptcy proceedings. Most estate claims are created after the beginning of these proceedings. There are, though, certain claims which can arise prior to the bankruptcy proceedings, such as the employee’s salaries and certain taxes.
• Bankruptcy claims: these represent claims against the debtor which are generated before the beginning of the bankruptcy. Dissimilar to rehabilitation proceedings, these claims do not include interests, expenses and damages incurred after the beginning of the bankruptcy proceedings;
• Other claims: our Korea company formation consultants can provide more details on what these other claims may consist of. We also provide help to open a company in Korea.
We are also at your disposal with services related to immigration to South Korea.
A foreigner with strong moral character who has held residency in South Korea for at least 2 years as a spouse migrant and meets the requirements to keep their resident status, such as Korean language competency can become eligible for a permanent residence permit. If you need support with your application, feel free to contact us.
We are also at your service with accounting support. Our accountants in Korea are at your disposal and are ready to provide tailored solutions to investors and business owners while ensuring that all financial regulations and standards are met. For a customized offer that is suited to the particulars of your company, get in touch with us.
Involuntary company dissolution in Korea
According to the Commercial Act in Korea, a minority shareholder who owns minimum 10% of all the outstanding shares of a legal entity, can demand from a competent jurisdiction Korean court the dissolution of a company.
Local court judges regard this procedure as an extraordinary one and it generally is taken into consideration after the other ways of resolving the shareholder dispute have failed.
Our Korea company registration agents can provide further details on the involuntary company dissolution in Korea. Our immigration lawyers in South Korea can offer advice on how to move here. One of the easiest methods to immigrate to Korea is by finding a job, as there are various work visas available. Please remember that you must first find employment here before submitting an application for a work and residency permit. If you need support in understanding the Employment Code, feel free to contact us.
Such a procedure is possible when:
• The business of the legal entity continues to be in a significant deadlock;
• The management or disposal of the assets of the company is significantly “improper”, therefore risking the company’s existence.
If you require more details about the bankruptcy proceedings in Korea, or if you need assistance in starting a business in Korea, please contact us. You can also count on our immigration lawyers in Korea should you decide to move here and we can recommend you lawyers in other countries too if you need legal services.