Korea Corporate Rehabilitation and Bankruptcy Cost Calculator

Compare Korean corporate rehabilitation, simplified rehabilitation, and corporate bankruptcy costs, including stamp duty, service fees, deposits, lawyer fees, and going-concern versus liquidation value.

Corporate insolvency inputs

Procedure under review

Case complexity

Rehabilitation versus bankruptcy

Estimated total cost

₩9,884,900

Court costs plus lawyer fee if selected.

Deposit

₩5,000,000

Trustee, investigator, or simplified procedure deposit.

Simplified rehab eligibility

Within KRW 5B

Based on rehabilitation claim and secured-claim total.

Decision screen

Bankruptcy favored

Rehab rate 0% vs bankruptcy 10%.

Cost breakdown

Stamp duty
₩900
Service fee
₩884,000
Deposit
₩5,000,000
Court cost subtotal
₩5,884,900
Lawyer fee
₩4,000,000
Estimated total
₩9,884,900

Three-procedure comparison

Corporate rehabilitation
₩41,264,600
Simplified rehabilitation
₩14,087,800
Corporate bankruptcy
₩9,884,900

Deposit detail

Investigator fee
₩0
Procedure costs
₩0
Deposit total
₩5,000,000
Liquidation value guarantee
Not met

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What Is the Korea Corporate Insolvency Cost Calculator?

This calculator compares the estimated 2026 cost of three Korean corporate insolvency procedures: corporate rehabilitation, simplified rehabilitation, and corporate bankruptcy. It itemizes stamp duty, service fees, deposits, and lawyer fee estimates based on liabilities, assets, creditor count, procedure type, and case complexity.

It also reflects the Seoul Bankruptcy Court corporate bankruptcy deposit easing announced for October 2024, including the KRW 5 million deposit bracket for liabilities under KRW 10 billion. For rehabilitation, it models investigator compensation by asset size because that is often the largest upfront cash requirement.

Who Uses This Calculator?

  • SME owners and directors deciding whether to preserve or liquidate a Korean company.
  • Companies checking whether simplified rehabilitation is available under the KRW 5 billion threshold.
  • Accountants, tax advisers, and lawyers explaining expected court deposits to clients.
  • Creditors estimating the procedural cost of a debtor company filing for insolvency.
  • Foreign shareholders who need an English view of Korea-specific rehabilitation and bankruptcy costs.

Corporate Rehabilitation, Simplified Rehabilitation, and Bankruptcy

1. Corporate Rehabilitation

Corporate rehabilitation is a going-concern restructuring procedure. The business continues, debts are adjusted through a rehabilitation plan, and the existing management may remain in control under debtor-in-possession practice. A court-appointed investigator reviews assets, liabilities, going-concern value, and liquidation value, so the deposit is high.

2. Simplified Rehabilitation

Simplified rehabilitation is a streamlined procedure for small business debtors, including corporations, whose rehabilitation claims and secured rehabilitation claims are KRW 5 billion or less. It uses a simplified investigator, reduces cost and time, and is designed for smaller companies.

3. Corporate Bankruptcy

Corporate bankruptcy liquidates a company that cannot continue. A trustee converts assets to cash, distributes proceeds to creditors, and the corporation is dissolved after the procedure. The October 2024 Seoul standard reduced upfront deposits for many asset-poor companies.

2026 Cost Items

Stamp Duty

Rehabilitation and simplified rehabilitation commencement petitions use KRW 30,000 stamp duty. A debtor-filed corporate bankruptcy petition uses KRW 1,000. E-litigation applies a 10% discount.

Service Fee

Service fees pay for court mailings. The model uses KRW 5,200 per unit and adds 5 base parties to the creditor count. Corporate bankruptcy uses 10 units, while rehabilitation procedures use higher unit counts because there are more court notices.

  • 10 creditors in bankruptcy: approximately KRW 780,000.
  • 30 creditors in bankruptcy: approximately KRW 1.82 million.
  • 50 creditors in bankruptcy: approximately KRW 2.86 million.

Deposit

Deposit is the main cash bottleneck. In rehabilitation it mostly funds the investigator. In bankruptcy it funds trustee administration. If the deposit is not paid after a court order, the petition can be dismissed.

Lawyer Fee

Lawyer fees vary with creditor count, asset complexity, criminal issues such as embezzlement or breach of duty, avoidance claims, M&A process, and plan drafting workload. The Korean model uses market-estimate brackets by procedure and complexity.

Corporate Bankruptcy Deposit Easing from October 2024

The Seoul Bankruptcy Court eased corporate bankruptcy deposit standards from October 14, 2024. The purpose was to lower the barrier for companies with large liabilities but little realizable assets.

Total liabilitiesDeposit after October 2024
Under KRW 10 billionKRW 5 million
KRW 10 billion to KRW 30 billionKRW 10 million
KRW 30 billion or moreKRW 15 million or more

Older practice used more detailed brackets, such as about KRW 5 million for liabilities under KRW 500 million, KRW 7 million to KRW 15 million for KRW 500 million to KRW 10 billion, and KRW 30 million or more for liabilities above KRW 10 billion. Some local courts may still use older or modified standards.

Rehabilitation Investigator Fee

Corporate rehabilitation deposits are mostly investigator compensation and are tied to total assets.

  • Assets under KRW 5 billion: about KRW 15 million.
  • Assets KRW 12 billion to KRW 20 billion: about KRW 32 million.
  • Assets KRW 2 trillion or more: about KRW 120 million, with additional amounts as scale increases.

How to Use the Calculator

1. Choose a Procedure

Select corporate rehabilitation, simplified rehabilitation, or corporate bankruptcy. The output also compares all three procedures.

2. Enter Liabilities, Assets, and Creditors

Liabilities drive bankruptcy and simplified rehabilitation deposits. Assets drive the rehabilitation investigator fee.

3. Set Lawyer and Complexity Assumptions

Select whether to include lawyer fees, and choose simple, standard, or complex case assumptions.

4. Compare Going-Concern and Liquidation Value

The second screen estimates whether rehabilitation or bankruptcy looks more favorable to creditors.

How to Think About Rehabilitation Versus Bankruptcy

For a rehabilitation plan to be approved, going-concern value should be at least as high as liquidation value. This is the liquidation value guarantee principle. If the business is worth more alive than liquidated, rehabilitation can be reasonable. If liquidation value is higher, bankruptcy may be more efficient.

  • Going-concern value above liquidation value: rehabilitation is usually more rational.
  • Liquidation value equal to or above going-concern value: bankruptcy is usually more rational.

Director Guarantees Are Separate

Corporate insolvency resolves the company debt. It does not automatically release a representative director from personal guarantees. In many cases, the director must separately consider personal rehabilitation or bankruptcy.

FAQ

How much does Korean corporate bankruptcy cost?

With deposit, stamp duty, service fees, and lawyer fees, many cases fall between roughly KRW 15 million and KRW 60 million. The October 2024 deposit easing lowered the burden for companies under KRW 10 billion in liabilities.

Why is rehabilitation often more expensive?

Rehabilitation requires investigation of assets, liabilities, going-concern value, and liquidation value. The investigator fee and plan drafting workload make the case more expensive than a simple liquidation.

Who can use simplified rehabilitation?

Small business debtors, including corporations, with rehabilitation claims and secured rehabilitation claims of KRW 5 billion or less can use simplified rehabilitation.

What if the deposit cannot be paid?

If the court orders a deposit and it is not paid, the petition can be dismissed. Funding the deposit is therefore a key step before filing.

Practical Notes

  • Secure deposit funding first: deposits are often the largest upfront court cost.
  • Use e-litigation where possible: electronic filing reduces stamp duty by 10%.
  • Account for priority claims: taxes, wages, and retirement pay can have priority in rehabilitation or bankruptcy.
  • Confirm local court practice: Seoul standards may differ from local court standards.
  • Treat fee brackets as estimates: investigator and lawyer costs can differ by case and representative.