[Invest&Law] "Speed Is Crucial in Rehabilitation Procedures... Optimal Decisions Must Be Made Within the Golden Time"

Author of the Corporate Rehabilitation Bible, "Debtor Rehabilitation Law"
Mainly Represents Companies in Rehabilitation and Restructuring Cases
Jeon Daegyu: "Accurate Analysis of Contingent Liabilities Is Crucial"
"The Golden Time for Rehabilitat

Lawyer Jeon Daegyu (former chief judge, Judicial Research and Training Institute Class 28, pictured), widely regarded as the nation’s top expert in corporate rehabilitation, emphasized, "The most important factor in the rehabilitation process is speed." He added, "The key is to make decisive adjustments to creditors’ positions and enable the company to make optimal decisions within six months to a year."

In an interview with Asia Economy on August 25, Jeon said, "During the court-led rehabilitation process, transactions are halted, guarantees cannot be obtained, and public institutions do not allow bidding. Therefore, it is in the best interest of companies for the court to make swift decisions within its discretion."

Jeon graduated from Gwangju Jinheung High School and then the business administration department at Seoul National University. In his senior year of college, he passed the Certified Public Accountant exam and worked at Samil Accounting Corporation before passing the bar exam in 1996. He then served as a judge at the Seoul Western District Court, Seoul Administrative Court, Seoul High Court, and as a professor at the Judicial Research and Training Institute. After ending his 23-year judicial career in 2022, he served as Vice President of Hoban Construction. He currently handles a wide range of corporate legal cases, including mergers and acquisitions, fair trade, and tax issues.

During his time as a judge, he presided over the Ssangyong Motor rehabilitation case, which was acquired by the KG Group consortium. He also made headlines for closing the Miju Steel rehabilitation case in a record 44 days, the shortest in the country. Typically, corporate rehabilitation cases take several years at best, but he was able to conclude the case in a short period.

Last year, he successfully represented Fly Gangwon, a low-cost carrier based in Gangwon Province, in its rehabilitation process. The case concluded when home appliance company Winix decided to acquire Fly Gangwon for 20 billion won. He said, "I consistently emphasized to the court the role of the airline industry as a key national infrastructure and the contribution of Fly Gangwon to the local economy," adding, "We focused on securing an acquirer, even postponing the submission of the rehabilitation plan nine times."

Recently, he acted as legal representative for an electric and natural gas-based bus manufacturer facing a liquidity crisis, successfully saving the company by proceeding with the rehabilitation process through a third-party acquisition. Jeon explained, "It was crucial to resolve the criminal risks related to management’s breach of trust issues and to accurately analyze contingent liabilities."

He is also well known for his public lectures and writing activities. His representative book, "Debtor Rehabilitation Law," is considered the bible for matters related to rehabilitation and bankruptcy. Jeon said, "Many lawyers want to study the fields of rehabilitation and bankruptcy," adding, "To help them, I will continue to publish revised editions and reorganize the insolvency law system."

Reflecting on decades of observing the corporate rehabilitation market, he shared his thoughts: "Many private equity funds have entered the capital market, shifting restructuring to a market-centered approach. However, there is still a lack of capable private equity funds specializing in restructuring, and many are speculative and greedy. Small and medium-sized companies with weaker fundamentals need a policy-driven approach through preemptive restructuring systems," he said.

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