106 Companies Approved for Business Restructuring This Year... Over 100 Companies for 2 Consecutive Years

[Asia Economy Sejong=Reporter Dongwoo Lee] The number of companies approved for business restructuring this year exceeded 100 for the second consecutive year, following last year.

The Ministry of Trade, Industry and Energy held the 36th Business Restructuring Plan Review Committee on the 28th and announced that it newly approved business restructuring plans for 49 companies in the future car, bio·eco-friendly, intelligent information·SoBuJang (materials·parts·equipment) sectors.

The Ministry of Trade, Industry and Energy has been operating the Business Restructuring Plan Review Committee based on the Corporate Vitality Promotion Act since 2016. Accordingly, last year, the number of companies approved for business restructuring (108 companies) exceeded 100 for the first time.

Since the system was implemented, the number of companies approved for business restructuring has reached 380 as of this year. The government has included in its national agenda a plan to support the business restructuring of 500 core companies over the next five years.

From this review, according to the business agreement signed between the Ministry of Trade, Industry and Energy and the Financial Supervisory Service last October, five major commercial banks (Kookmin, Shinhan, Hana, Woori, Nonghyup) discovered and recommended 13 companies as candidates for business restructuring approval, and from next year, they plan to strive to recommend 100 companies annually.

The government operates a system to support proactive and voluntary business restructuring of healthy companies to prevent enormous economic and social costs caused by corporate restructuring. Companies approved for business restructuring receive incentives across various fields such as simplified procedures and regulatory exemptions under the Commercial Act and the Fair Trade Act, research and development, finance, consulting, and taxation, on the condition that they pursue structural changes such as mergers, splits, stock transfers, asset transfers, business transfers, company establishment, and business innovation.

Jang Young-jin, the 1st Vice Minister of the Ministry of Trade, Industry and Energy, said, "If the banking sector extends loan maturities and expands financial support to companies approved for business restructuring, companies will be able to carry out business restructuring without financial pressure, and the benefits will be shared by both the industrial sector and the banking sector."

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