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Ease of Doing Business in

Korea, Rep

Korea, Rep Download Profile (1771.7KB, pdf)
Region OECD high income
Income Category High income
Population 50,617,045
GNI Per Capita (US$) 27,440
City covered Seoul

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 5 4 down
1
84.07 83.86 down
0.21
Starting a Business 11 17 up
6
95.83 94.36 up
1.47
Dealing with Construction Permits 31 28 down
3
77.84 77.83 up
0.01
Getting Electricity 1 1
-
99.88 99.88
-
Registering Property 39 41 up
2
76.34 76.22 up
0.12
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 13 10 down
3
73.33 73.33
-
Paying Taxes 23 25 up
2
86.56 86.54 up
0.02
Trading across Borders 32 32
-
92.52 92.52
-
Enforcing Contracts 1 1
-
84.15 84.15
-
Resolving Insolvency 4 6 up
2
89.22 88.75 up
0.47

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

4

DB 2016 Rank:

6

Change in Rank:

up2

DB 2017 DTF (% points):

89.22

DB 2016 DTF (% points):

88.75

Change in DTF (% points):

up0.47

Indicator Korea, Rep OECD high income
Recovery rate (cents on the dollar) info_outline 84.5 73.0
Time (years) info_outline 1.5 1.7
Cost (% of estate) info_outline 3.5 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 ..
Strength of insolvency framework index (0-16) info_outline 14 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 84.5
    Proceeding Mirage would initiate reorganization as it is the best way to preserve the value of the hotel and keep the supplier/employee network. Mirage management will file the petition at Seoul Central District Court. reorganization
    Outcome The reorganization plan gets approved by the creditors and the company would continue operating as a going concern. going concern
    Time (in years) The reorganization procedure (not fast-track procedure) until the reorganization plan is approved by creditors take approximate 1.5 years. 1.5
    Cost (% of estate) The costs associated with the case would amount to approximately 4% of the value of the debtor's estate. Cost incurred during the entire insolvency process mainly include court or government agency fees (1-2%), attorney fees (1-1.5%), costs of notification and publication (0.00001%)), insolvency representative fees (0.3), fees of accountants, assessors, inspectors and other professionals (included in court fees), and fees of auctioneers (included in court fees). 3.5
    Answer Score
    Strength of insolvency framework index (0-16) 14.0
    Commencement of proceedings index (0-3) 2.5
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor may file for both liquidation and reorganization 1.0
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (b) The value of debtor’s liabilities exceeds the value of its assets 0.5
    Management of debtor's assets index (0-6) 5.5
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? Yes 1.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all pre-commencement creditors, secured or unsecured 0.5
    Reorganization proceedings index (0-3) 3.0
    Which creditors vote on the proposed reorganization plan? (b) Only creditors whose rights are affected by the proposed plan 1.0
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? Yes 1.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? Yes 1.0
    Creditor participation index (0-4) 3.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? No 0.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.