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Korean Journal of Financial Studies 2012;41(1):153-188.
Published online February 28, 2012.
Evaluation on Korea`s Capital Markets-based Corporate Restructuring Institutions and Policies
Hyoung Tae Kim, Ki Beom Binh
자본시장 기반 기업구조조정 제도의 현황 분석 및 정책 개선에 관한 연구
김형태, 빈기범
Abstract
A corporate restructuring market, as a sub-market within capital markets, is necessary and essential for capitalism and a market economy to function well. Corporate restructuring activities lead to optimal allocation by injecting scarce resources to failed projects. This also helps to diagnose and give a prescription for such failures. In Korean capital markets, the corporate restructuring system was introduced after the 1997 economic crisis as an ex-post measure and on a pro re nata basis. Therefore, Korean capital markets` corporate restructuring system is not enough to function as an ex-ante, permanent, and preventive measure for corporate failures. Moreover, many redundant and duplicate articles about corporate restructuring are stipulated in several financial markets laws including the Financial Investment Services and Capital Markets Act (FSCMA). This paper examines the history and status of the corporate restructuring system in Korean capital markets, and then gives policy proposals to further advance the system. First and foremost, an appropriate legal system should be placed to ensure that private equity funds (PEFs) defined in the FSCMA can carry out creative and discretionary corporate restructuring activities. We also suggest the integration of the numerous laws that cover pseudo corporate restructuring vehicles. Meanwhile, regulators and capital market participants should view PEFs differently from hedge funds, whose legal status is Privately Placed Fund for Qualified Investors Only according to the revised FSCMA Enforcement Decree. The two vehicles are supposed to serve different functions and roles in the financial market. On the other hand, the FSCMA should incorporate the limited partnership and limited liability company. These were newly introduced in the amended Commercial Law, which will go into effect in the middle of 2012. Those organizations are suitable for private funds since they can be established and operated with flexibility. Last, shareholder protection should be strengthened to make the corporate restructuring mechanism function well on a constant basis.
Key Words: 기업구조조정,사모투자전문회사,사전적 기제,자본시장법,주주권리 보호,Corporate Restructuring,Ex-ante Mechanism,PEFs,Shareholder Protection,the Financial Investment Services and Capital Markets Act
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