Is there an opportunity for rehabilitation of debtors with large losses, the first approval decision has been made?

[Beyond Post Reporter Kim Shin] While many debtors suffered huge losses overnight due to the recent SG Securities stock price drop, a case in which a rehabilitation plan was approved for a debtor is attracting attention.

The SG incident was a situation in which the stock prices of nine stocks plummeted simultaneously due to a large amount of reverse trading that occurred in a securities company's CFD (Certain Contract for Difference) account. At Kiwoom Securities, where suspicions of unfair trading in this regard arose, it was confirmed that an executive's related party had sold about 15 billion won in certain stocks before the stock price plunged.

Due to this incident, debtors suffered a loss of not only the investment principal, but also up to 2.5 times the principal. Debtors who have suffered losses are considering personal rehabilitation and filing for bankruptcy. However, due to qualification restrictions such as debt limits, it was virtually impossible for professionals and others to apply for personal rehabilitation, so the damage was even more severe as there was no relief plan.

It is reported that some of the current debtors are preparing a planning lawsuit to attempt negotiations with securities companies. However, we must be cautious because if we proceed without proper investigation, it may cause secondary damage.

In this situation, for the first time, a decision was made to approve a general rehabilitation plan for a large debtor who was unable to apply for personal rehabilitation due to debt incurred due to excessive investment following the SG incident.

Despite difficult situations such as negative public opinion on personal debt exemption due to excessive investment and coordination with securities companies and rehabilitation courts due to unprecedented circumstances, attention is being paid to whether the approval decision will open up a path to rehabilitation for those 'in debt.'

Regarding this issue, attorney Daeryun of Law Firm (Limited) said, “I believe that the approval decision was made after communicating closely with the investigators and administrators and persuading the securities company, which is the largest creditor, with the consent of the largest creditor.” He added, “I hope that this decision will provide a ray of hope to those who are experiencing difficulties due to debt arising from investments and provide an opportunity for a new start.”

Beyond Post reporter Shin Kimnews@beyondpost.co.kr

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