Legislate the Simple Corporate Withdrawal Procedure

It was pointed out that a bankruptcy procedure must be reform to withdraw marginal firms immediately.

Also, experts insisted that the necessary conditions for the stock option exercise must be expanded to strengthen a right of non-controlling shareholders. The ministry of Commerce, Industry and Resource and the federation of Korean industries had an industrial competitiveness strategy meeting for industrial development vision of 2010 with 30 experts in Marriott hotel, Seoul in July 10.

Choi, Du-Yeol, the professor of Korea University of Technology and Education said “Automatic Stay under which protection from any lawsuit by creditors is automatically given to debtors right after the bankruptcy procedure is filed to withdraw the marginal firms promptly must be introduced”.

Kim Eun-Ki, ther professor of Korea Cyber University said, “Through decreasing the necessary capital requirements (minimum KRW 50 million) for a joint-stock corporation establishment, the small capital corporation must be able to be established. Also, there must be the good possibility to compete in the idea and certain technology”. Also, he insisted “in case of M&A, the scope of stock options for non-controlling shareholders must be extended and so the investments must be activated”.

Choi, In-Cheol, the doctor of Samsung Economic Research Institute said that there must be the policy which has the systematic infrasructure to strengthen the corporate competitiveness. Especially, he indicated the problem that the control structure improvement by the market function has been performed as the M&A market is not activated due to ‘non-economic barrier’ such as a succession obligation and public animosity.

Yang Geum-Seung, the team leader of Economic Regulation of the Federation of Korean Industries said, “In terms of M&A and MBO activation, when the general meeting of shareholders are called, the period of creditor’s objection submission must be notified in advance. The period required for M&A must be shortened through public notice, not individual notice”.

Ja-Ryong Koo bonhong@donga.com