Over 100 Companies Approved for Business Restructuring This Year... Five Years Since One-Shot Law Implementation

Ministry of Industry Holds Business Restructuring Plan Review Committee Meeting... 57 Companies Newly Approved

[Sejong=Asia Economy Reporter Kwon Haeyoung] The number of companies approved for business restructuring this year has surpassed 100 following the implementation of the "Special Act on Revitalizing Corporate Vitality (One-Shot Act)," which simplifies procedures and regulations to assist companies in preemptive restructuring.

On the 15th, the Ministry of Trade, Industry and Energy held the 32nd Business Restructuring Plan Review Committee at the Korea Chamber of Commerce and Industry and newly approved business restructuring plans for 57 companies in sectors such as eco-friendly and carbon neutrality, digital transformation and the 4th Industrial Revolution, healthcare, and other new industries. As a result, the total number of companies approved for business restructuring this year increased to 108. This is the first time in five years since the One-Shot Act was implemented that the annual number of approved business restructuring companies has exceeded 100.

The 57 companies approved for business restructuring this time plan to invest 584.7 billion KRW to secure post-COVID-19 growth engines and hire 1,842 employees. Companies approved for business restructuring receive concentrated support in various areas such as simplified procedures and regulatory exemptions under the Commercial Act and the Fair Trade Act, as well as incentives in research and development (R&D), finance, consulting, and taxation, on the condition that they pursue structural changes such as mergers and splits and business innovation.

Park Jin-gyu, Vice Minister of the Ministry of Trade, Industry and Energy, stated, "Carbon neutrality and digital transformation are the most important variables that can affect the profitability, growth potential, and financial soundness of our companies in the post-COVID-19 era," adding, "Next year, we plan to focus on supporting more than 100 companies in business restructuring with an emphasis on responding to carbon neutrality and digital transformation."

The government plans to amend the One-Shot Act to include companies promoting carbon neutrality and digital transformation as eligible for business restructuring and provide these companies with a comprehensive package of the four major business restructuring incentives: R&D, finance, consulting, and taxation.

Meanwhile, prior to the review committee meeting, a business restructuring implementation strategy consulting memorandum of understanding (MOU) was signed between Anjin Accounting Corporation and Eon Group, the consulting agencies for business restructuring implementation strategies, and four companies approved for business restructuring.

An official from the Ministry of Trade, Industry and Energy said, "The business restructuring implementation strategy consulting, which has been piloted focusing on business strategy and financial strategy, will be expanded next year to include technology commercialization areas such as intellectual property rights and patents," and added, "The number of companies supported by implementation strategy consulting will also be significantly expanded from 11 this year to 80."

This content was produced with the assistance of AI translation services.