(a) In relation to each type of insolvency procedure available in the legal system of this economy, to what extent are the claims of foreign creditors recognised in the context of administration of that procedure?

(b) What principles or rules apply to the recognition and admission of claims by foreign creditors? (for example

(i) Are claims by foreign creditors subject to particular rules in relation to priority of payment?

(ii) Do foreign creditors have to satisfy special or additional requirements in order for their claims to be admitted?)

(iii)What law is applied to establish the validity the validity of foreign cliaims?

Under the Korean law, the foreigner creditors have the same rights as Korean creditors and the foreign creditors are treated equally as the Korean creditors in the Composition, Reorganization and Bankruptcy proceedings. However, the foreign creditor shall receive such treatment only if the foreign creditor's nation would also provide the same treatment and protection to the Korean creditors in the foreign nation in its Composition, Reorganization or Bankruptcy proceedings.

We further note that just because the creditor is a foreigner, it does not mean that the foreign creditor will receive any type of preference over the Korean creditors. Both Korean and the foreign creditors are treated equally and have the equal rights in the insolvency proceedings mentioned above.

(a) To what extent does the insolvency law of this economy claim jurisdiction over assets of a corporate debtor situated abroad?

(a) To what extent do the rules of private international law of the legal system of this economy recognise insolvency procedures commenced in foreign jurisdictions?

(b) Under what circumstances, if any, may orders or judgments resulting from foreign insolvency procedures or administrations be recognized or enforced in the legal system of this economy?

If the Composition, Reorganization or Bankruptcy proceeding has been initiated in a foreign country, the judgement obtained from the foreign court has no effect on the assets located in Korea. Thus, the Insolvency proceeding in a foreign court may not have any effect on the assets located in Korea.

(a) What recognition is accorded in the legal system of this economy to the status and capacity of insolvency administrators (for example trustees, liquidators, receivers) appointed in foreign insolvency procedures?

(b) To what extent are foreign insolvency administrators entitled to claim, take control of, and realise or deal with property of the corporate debtor situated within the jurisdiction of the legal system of this economy?

The capacity of insolvency administrators appointed in foreign insolvency procedure depends on the question of whether the administrator has the authority to administer the assets located in Korea on behalf of the corporate debtor of the foreign insolvency proceeding. The capacity of insolvency administrator depends on the law of the insolvency administrator's country. Therefore, if the law of the insolvency administrator allows the administrator to administer the assets in Korea, the administrator is deemed to exercise its authority in Korea on behalf of the corporate debtor.

(a) To what extent does the legal system of this economy recognise the validity of rights of security asserted by foreign creditors over assets of the corporate debtor?

(b) Are any special rules applicable to determine the validity, extent and ranking of such security rights?

If the Composition, Reorganization or Bankruptcy proceeding is held in Korean courts in the republic of Korea, only the debtor's assets in Korea may be contemplated by the court and the debtor's assets located outside of Korea may not be contemplated

(a) To which international conventions having some application in insolvency matters is this economy a party?

(b) When were these conventions entered into, and what other states are parties?

(c) What observations can be made about the practical results achieved under these international instruments?

None.

(a) Are there any other particular issues or special problems in the field of cross-border insolvency, not included in the answers supplied above, which have presented themselves before the courts of the legal system of this economy?

None.

(a) Is the government of this economy aware of the UNCITRAL model law on cross-border insolvency, approved by the United Nations in June 1997?

(b) If so, are you aware of whether the government has any proposals to enact the terms of the model law?

None.