Daemyeong Legal Asia Corporate Restructuring Team, Lawyers Lee Woong-min and Kim Jeong-dong
“Consideration of recovery procedure when it becomes serious…Preemptive response is important”
‘Dramatic recovery’ for DPICO, recovery procedure to be concluded in 1-2 months
“Expanding consulting for pre-structural adjustment including finance and management”, ‘[Edaily reporter Sung Ju-won] “In crisis situations, most people’s judgment becomes clouded. At that time, it is important to seek the opinion of a third party who can look at it with a cool head. It’s something that can be prevented, but I’ve seen many cases where it was left unattended and eventually led to a crisis. It is necessary to listen to the advice of experts preemptively and take action,”‘,
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, ‘Lee Woong-min (Judicial Research and Training Institute 33rd) leading Daemyeong Legal Asia Corporate Restructuring Team, said in an interview with Edaily on the 28th that proactive response of companies in the face of the recent increase in corporate recovery and bankruptcy cases is important.’,
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| Lawyer Lee Woong-min, who leads Daemyeong Legal Asia Corporate Restructuring Team, is interviewed with Edaily. (Photo = Photographer Lee Young-hoon) |
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, “Increase in corporate recovery and bankruptcy cases…Preemptive response when it’s less bad is important”,
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, ‘Many companies are facing difficulties in management due to factors such as rising interest rates, economic downturn, and increase in raw material costs. Sales are stagnant or decreasing, while costs are increasing, leading to accumulated losses. There are also a significant number of companies that are in dire situations where they cannot even cover interest costs with operating profits.’,
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, ‘According to the Judicial Statistics Monthly Report, the number of corporate recovery and bankruptcy cases filed in courts nationwide last year totaled 2,681 cases, a 61% increase compared to the previous year (1,665 cases). This is interpreted as many companies going bankrupt as the public fund support and repayment deferment measures following the COVID-19 crisis come to an end.’,
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, ‘The problem is that this trend is continuing this year as well. The total number of corporate recovery and bankruptcy cases filed in the first quarter of this year was 672, an increase of 29.5% compared to the same period last year (519 cases). ‘,
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| Number of corporate recovery and bankruptcy cases filed in courts nationwide (unit: cases, Source: Judicial Statistics Monthly Report) |
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, ‘Lawyer Lee mentioned, “When consulting with companies considering recovery procedures, it is often the case that they only consider the recovery procedure when the financial situation is seriously distressed.” He said, “Many companies hesitate to consider the recovery procedure as a last resort due to concerns about the stigma effect of the recovery procedure leading to credit downgrade or severance of trading relationships.”‘,
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, ‘He emphasized, “However, if companies experiencing financial difficulties undergo structural adjustments in a timely manner, they can reduce costs and more easily restore to normalcy” and added, “It’s better to act quickly when things are less bad.”‘,
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, ‘The Daemyeong Legal Asia Corporate Restructuring Team recently provided legal advice to domestic electric vehicle company DPICO, which received authorization for a recovery plan from the court. In the case of DPICO, the company faced difficulties even starting the recovery procedure with production halted until just before the creditors’ meeting.’,
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, ‘Kim Jeong-dong (Lawyer Bar Exam 1st round), who is also advising DPICO alongside this lawyer, explained, “DPICO approached us when the factory was shut down and wage arrears occurred even in a situation where there was a lack of necessary operating funds to start the recovery procedure, encountering many obstacles such as unexpected contingent liabilities being reported,”’,
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, ‘He said, “Although we have successfully obtained authorization for the recovery plan, we couldn’t relax until just the day before the creditors’ meeting as creditor claims continued until the end.” He said, “If we had started the recovery procedure promptly before production was halted, we could have proceeded with the procedure more easily and efficiently.”‘,
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, ‘DPICO, which began the recovery procedure in September last year and received approval for the recovery plan this month, plans to conclude the recovery procedure after carrying out the recovery plan for the next 1-2 months.’,
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| Lawyer Kim Jeong-dong of Daemyeong Legal Asia Corporate Restructuring Team is interviewed with Edaily. (Photo = Photographer Lee Young-hoon) |
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, “Wide spectrum of insolvency-related work…Will expand ‘pre-consulting'”,
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, ‘This lawyer mentioned that the strengths of the Daemyeong Legal Asia Corporate Restructuring Team include “abundant experience and know-how in insolvency procedures, lawyers who can provide multi-play, close work with customers, and amicable collaboration with courts, investigation commissions, financial institutions, etc.”‘,
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, ‘He stated, “We have successfully handled recovery operations for companies like Dongbu Construction (005960), and Dongyang (001520) Group in the past, as well as recent recovery operations for underperforming construction companies and golf courses,” and added, “Based on accumulated experience and know-how, we can provide necessary solutions even when unforeseen situations arise during the procedure.”‘,
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, ‘He further said, “Having experienced various cases such as debtor representation, creditor representation, and handling advisory and litigation as a team, our team’s strength lies in the wide spectrum of business operations.” He added, “We can directly handle various tasks such as advisory, litigation, pre-licensing M&A (mergers and acquisitions) related to recovery procedures.”‘,
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, ‘The Daemyeong Legal Asia Corporate Restructuring Team also revealed plans to further expand pre-structural adjustment consulting. They aim to pave the way for prevention before things escalate.’,
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, ‘Lawyer Kim stressed, “Rather than seeking expert help only when the crisis deepens, if companies proactively consider countermeasures when signs of crisis appear, they can relatively easily receive prescriptions and avoid crises” and added, “We will more actively provide services that involve pre-inspection not only legally but also in terms of financial structure and management strategy.”.’
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