Since the financial crisis in 1997, several attempts have been made in restructuring the corporate sector in Korea to strengthen the corporate sector as well as financial sector, as the two restructuring tasks are two side of the same coin. As a result of massive bankruptcies due to the systemic crisis of 1997, both the out-of-court rehabilitation process and court-led bankruptcy procedures needed to change. To handle massive bankruptcies in the short run and resolve systemic inefficiency in the corporate sector, comprehensive reform measures were required. The government implemented numerous reform measures, but three areas in corporate sector reform were emphasized. (The rest is omitted.)

Executive Summary

I. Introduction

II. Brief Summary of Corporate Sector Reforms in Korea
1. Corporate Sector Restructuring After the Crisis
2. Reforms on Corporate Bankruptcy Process
3. Financial Intermediaries for Corporate Restructuring
4. Assessment of Corporate Reforms since the Crisis

III. Evaluation of Corporate Rehabilitation Measures
1. Data Description
2. Model Specification
3. Estimation Results

IV. Conclusion

References