1. Setting Insolvency Rules - a course of understanding and persuasion Forum for Asian Insolvency Law Reform III Seoul, Nov. 10-11, 2003 Prof. Soogeun OH Ewha Womans University

2. Statutory Structure of the Korean Insolvency Regime Corporate Rehabilitation Act(1962) Composition Act(1962) Bankruptcy Act(1962) Corporate Restructuring Promotion Act(2001)

3. Insolvency Law Reforms 1998 : Economic Test 1999 : Almost automatic commencement 2001 : Workout supplements 2000-2004 : Consolidation and overall renewal

4. Policy Issues Single track or multiple tracks? DIP or trustee? Automatic stay or decision at commencement? Balance among tracks? Automatic discharge or fidelity test?

5. Formation of the Draft Bill General provisions Rehabilitation procedure Bankruptcy procedure Personal rehabilitation procedure Cross-border insolvency procedure Penalties

6. Major Actors in Reforms Drafters Econocrats Judges and practicing lawyers International financial institutions Interest groups

7. Econocrats Positive aspects –Strong support for the reform –Aggressive attitude toward goals Negative aspects –Preference for a mechanical process to limit discretionary decisions by judges and creditors –Preference for rapid enactment rather than near flawless drafting

8. Judges and Attorneys Positive aspects –Committed to cooperation in drafting –Effort to narrow the gap between letters on statutes and practices Negative aspects –Less sensitive to the demand of the society –Demand for comparative legislative examples rather than own persuasive logics

9. International Financial Institutions Positive aspects –Strong inducement to law reform –Providing information Negative aspects –Misunderstanding of true reason for the inefficient insolvency regime –Hardware-oriented approach

10. Interested Groups Positive aspects –Participation in consensus-building –Telling real story in business practice Negative aspects –Misunderstanding about insolvency mechanisms –Unbalanced voice among interested groups

11. Political and Technical Process Political process –Consensus-building on unfamiliar concepts –New power structure Technical process –Procedural completeness –Compatibility with other judicial process

12. Understanding and Persuasion Understanding –Interests of related parties –Possible options Persuasion –Continuous teaching sessions on insolvency mechanisms –Negotiations with interested groups

13. Thank you very much.