Korea Corporate Rehabilitation Going-Concern Value and Plan Cash Flow Calculator

Project 60 months of operating and claim-group cash flow, estimate a five-year DCF going-concern reference, and compare liquidation value, group floors and revenue stress liquidity.

2026 Korean rules · sources checked August 29, 2026

Compare 60-month operating cash, claim-group cash-payment present value and entered liquidation floors without treating the output as a formal valuation, claim classification or confirmation decision.

1. Operating cash inputs

Use repeatable cash items from recent financial statements and monthly cash records.

KRW

Cash the company can actually use to perform the plan

KRW
KRW

Uses the same growth and stress multiplier as revenue

KRW
KRW
KRW
KRW

2. Valuation, funding and stress assumptions

Use company-specific, professionally reviewed assumptions rather than market averages.

%
%
KRW

An assumption until court approval, financing or investment is confirmed

months
%

Must remain above the terminal growth rate

%

Must remain below the annual discount rate

KRW

Use only a value reviewed for possible inclusion in plan resources

%

3. Liquidation recovery inputs

Enter asset-level recoveries after liquidation adjustments and avoid duplicate costs.

KRW
KRW
KRW
KRW
KRW
KRW

Do not duplicate costs already deducted from asset recoveries

4. Verified common-benefit claims

Wages, retirement benefits and post-commencement operating items verified as common-benefit claims

KRW

Amount supported by the creditor list, claim review or professional analysis

%
months
months
%
KRW

The calculator does not allocate statutory distribution priority

5. Verified secured rehabilitation claims

Secured rehabilitation claims after reviewing collateral value and any unsecured excess

KRW

Amount supported by the creditor list, claim review or professional analysis

%
months
months
%
KRW

The calculator does not allocate statutory distribution priority

6. Verified priority rehabilitation claims

Taxes or other priority rehabilitation claims that are not duplicated as common-benefit claims

KRW

Amount supported by the creditor list, claim review or professional analysis

%
months
months
%
KRW

The calculator does not allocate statutory distribution priority

7. Verified general rehabilitation claims

Other amounts verified as general rehabilitation claims

KRW

Amount supported by the creditor list, claim review or professional analysis

%
months
months
%
KRW

The calculator does not allocate statutory distribution priority

60-month user-assumption screening

Value comparison and plan cash

Five-year DCF reference

KRW 2,872,539,168

Net liquidation value

KRW 680,000,000

Reference value difference

KRW 2,192,539,168

Base peak funding gap

KRW 0

Base first shortfall

None within 60 months

Operating cash coverage

2.33x

Groups below liquidation floor

4

Terminal-value share

59.6%

Claim-group plan and liquidation-floor comparison

Claim-group 60-month payment and liquidation-floor comparison
Claim groupVerified claimCash principalPayment in 60 monthsPrincipal after month 60Full plan PVLiquidation floorPV differencePlan end month
Verified common-benefit claimsKRW 120,000,000KRW 120,000,000KRW 120,000,000KRW 0KRW 112,915,160KRW 120,000,000KRW -7,084,84012
Verified secured rehabilitation claimsKRW 300,000,000KRW 240,000,000KRW 256,500,000KRW 0KRW 189,974,768KRW 250,000,000KRW -60,025,23260
Verified priority rehabilitation claimsKRW 80,000,000KRW 80,000,000KRW 80,000,000KRW 0KRW 67,499,454KRW 70,000,000KRW -2,500,54636
Verified general rehabilitation claimsKRW 500,000,000KRW 150,000,000KRW 150,000,000KRW 0KRW 107,175,871KRW 160,000,000KRW -52,824,12960

Revenue stress sensitivity

Cash comparison for the base and revenue stress cases
ScenarioOperating cashEnding cashMinimum cashFirst shortfallPeak funding gapCoverage
Base caseKRW 1,415,532,976KRW 1,109,032,976KRW 207,777,778NoneKRW 02.33x
Revenue -20%KRW 382,237,585KRW 75,737,585KRW 66,496,880NoneKRW 00.63x
Revenue -30%KRW -134,410,111KRW -440,910,111KRW -440,910,11118KRW 440,910,111-0.22x

Five-year cash summary

Annual revenue, operating cash, funding, plan payments and year-end cash
YearRevenueOperating cashNew fundingPlan paymentYear-end cash
1KRW 2,432,823,881KRW 247,649,218KRW 100,000,000KRW 176,766,667KRW 370,882,551
2KRW 2,505,808,598KRW 264,733,497KRW 0KRW 123,166,667KRW 512,449,382
3KRW 2,580,982,856KRW 282,451,402KRW 0KRW 121,566,667KRW 673,334,117
4KRW 2,658,412,341KRW 300,824,361KRW 0KRW 93,300,000KRW 880,858,478
5KRW 2,738,164,712KRW 319,874,498KRW 0KRW 91,700,000KRW 1,109,032,976
Open the 60-month detailed cash flow60 months
Monthly operating cash, claim-group payments and ending cash for 60 months
MonthRevenueOperating cashNew fundingCommon-benefitSecuredPriorityGeneralTotal plan paymentEnding cash
1KRW 200,000,000KRW 20,000,000KRW 0KRW 10,000,000KRW 0KRW 2,222,222KRW 0KRW 12,222,222KRW 207,777,778
2KRW 200,493,254KRW 20,114,723KRW 0KRW 10,000,000KRW 0KRW 2,222,222KRW 0KRW 12,222,222KRW 215,670,278
3KRW 200,987,724KRW 20,229,795KRW 0KRW 10,000,000KRW 0KRW 2,222,222KRW 0KRW 12,222,222KRW 223,677,851
4KRW 201,483,414KRW 20,345,219KRW 0KRW 10,000,000KRW 0KRW 2,222,222KRW 0KRW 12,222,222KRW 231,800,848
5KRW 201,980,327KRW 20,460,995KRW 0KRW 10,000,000KRW 0KRW 2,222,222KRW 0KRW 12,222,222KRW 240,039,621
6KRW 202,478,465KRW 20,577,124KRW 100,000,000KRW 10,000,000KRW 0KRW 2,222,222KRW 0KRW 12,222,222KRW 348,394,523
7KRW 202,977,831KRW 20,693,608KRW 0KRW 10,000,000KRW 5,044,444KRW 2,222,222KRW 0KRW 17,266,667KRW 351,821,464
8KRW 203,478,429KRW 20,810,446KRW 0KRW 10,000,000KRW 5,033,333KRW 2,222,222KRW 0KRW 17,255,556KRW 355,376,355
9KRW 203,980,262KRW 20,927,641KRW 0KRW 10,000,000KRW 5,022,222KRW 2,222,222KRW 0KRW 17,244,444KRW 359,059,552
10KRW 204,483,332KRW 21,045,193KRW 0KRW 10,000,000KRW 5,011,111KRW 2,222,222KRW 0KRW 17,233,333KRW 362,871,411
11KRW 204,987,644KRW 21,163,102KRW 0KRW 10,000,000KRW 5,000,000KRW 2,222,222KRW 0KRW 17,222,222KRW 366,812,291
12KRW 205,493,198KRW 21,281,371KRW 0KRW 10,000,000KRW 4,988,889KRW 2,222,222KRW 0KRW 17,211,111KRW 370,882,551
13KRW 206,000,000KRW 21,400,000KRW 0KRW 0KRW 4,977,778KRW 2,222,222KRW 3,125,000KRW 10,325,000KRW 381,957,551
14KRW 206,508,052KRW 21,518,990KRW 0KRW 0KRW 4,966,667KRW 2,222,222KRW 3,125,000KRW 10,313,889KRW 393,162,652
15KRW 207,017,356KRW 21,638,342KRW 0KRW 0KRW 4,955,556KRW 2,222,222KRW 3,125,000KRW 10,302,778KRW 404,498,216
16KRW 207,527,917KRW 21,758,057KRW 0KRW 0KRW 4,944,444KRW 2,222,222KRW 3,125,000KRW 10,291,667KRW 415,964,607
17KRW 208,039,737KRW 21,878,136KRW 0KRW 0KRW 4,933,333KRW 2,222,222KRW 3,125,000KRW 10,280,556KRW 427,562,188
18KRW 208,552,819KRW 21,998,581KRW 0KRW 0KRW 4,922,222KRW 2,222,222KRW 3,125,000KRW 10,269,444KRW 439,291,324
19KRW 209,067,166KRW 22,119,391KRW 0KRW 0KRW 4,911,111KRW 2,222,222KRW 3,125,000KRW 10,258,333KRW 451,152,382
20KRW 209,582,782KRW 22,240,569KRW 0KRW 0KRW 4,900,000KRW 2,222,222KRW 3,125,000KRW 10,247,222KRW 463,145,729
21KRW 210,099,670KRW 22,362,115KRW 0KRW 0KRW 4,888,889KRW 2,222,222KRW 3,125,000KRW 10,236,111KRW 475,271,732
22KRW 210,617,832KRW 22,484,030KRW 0KRW 0KRW 4,877,778KRW 2,222,222KRW 3,125,000KRW 10,225,000KRW 487,530,762
23KRW 211,137,273KRW 22,606,315KRW 0KRW 0KRW 4,866,667KRW 2,222,222KRW 3,125,000KRW 10,213,889KRW 499,923,188
24KRW 211,657,994KRW 22,728,971KRW 0KRW 0KRW 4,855,556KRW 2,222,222KRW 3,125,000KRW 10,202,778KRW 512,449,382
25KRW 212,180,000KRW 22,852,000KRW 0KRW 0KRW 4,844,444KRW 2,222,222KRW 3,125,000KRW 10,191,667KRW 525,109,715
26KRW 212,703,293KRW 22,975,402KRW 0KRW 0KRW 4,833,333KRW 2,222,222KRW 3,125,000KRW 10,180,556KRW 537,904,561
27KRW 213,227,877KRW 23,099,178KRW 0KRW 0KRW 4,822,222KRW 2,222,222KRW 3,125,000KRW 10,169,444KRW 550,834,295
28KRW 213,753,754KRW 23,223,330KRW 0KRW 0KRW 4,811,111KRW 2,222,222KRW 3,125,000KRW 10,158,333KRW 563,899,292
29KRW 214,280,929KRW 23,347,858KRW 0KRW 0KRW 4,800,000KRW 2,222,222KRW 3,125,000KRW 10,147,222KRW 577,099,928
30KRW 214,809,403KRW 23,472,764KRW 0KRW 0KRW 4,788,889KRW 2,222,222KRW 3,125,000KRW 10,136,111KRW 590,436,580
31KRW 215,339,181KRW 23,598,048KRW 0KRW 0KRW 4,777,778KRW 2,222,222KRW 3,125,000KRW 10,125,000KRW 603,909,628
32KRW 215,870,266KRW 23,723,711KRW 0KRW 0KRW 4,766,667KRW 2,222,222KRW 3,125,000KRW 10,113,889KRW 617,519,451
33KRW 216,402,660KRW 23,849,756KRW 0KRW 0KRW 4,755,556KRW 2,222,222KRW 3,125,000KRW 10,102,778KRW 631,266,429
34KRW 216,936,367KRW 23,976,182KRW 0KRW 0KRW 4,744,444KRW 2,222,222KRW 3,125,000KRW 10,091,667KRW 645,150,944
35KRW 217,471,391KRW 24,102,990KRW 0KRW 0KRW 4,733,333KRW 2,222,222KRW 3,125,000KRW 10,080,556KRW 659,173,378
36KRW 218,007,734KRW 24,230,183KRW 0KRW 0KRW 4,722,222KRW 2,222,222KRW 3,125,000KRW 10,069,444KRW 673,334,117
37KRW 218,545,400KRW 24,357,760KRW 0KRW 0KRW 4,711,111KRW 0KRW 3,125,000KRW 7,836,111KRW 689,855,766
38KRW 219,084,392KRW 24,485,723KRW 0KRW 0KRW 4,700,000KRW 0KRW 3,125,000KRW 7,825,000KRW 706,516,489
39KRW 219,624,713KRW 24,614,073KRW 0KRW 0KRW 4,688,889KRW 0KRW 3,125,000KRW 7,813,889KRW 723,316,673
40KRW 220,166,367KRW 24,742,812KRW 0KRW 0KRW 4,677,778KRW 0KRW 3,125,000KRW 7,802,778KRW 740,256,707
41KRW 220,709,357KRW 24,871,939KRW 0KRW 0KRW 4,666,667KRW 0KRW 3,125,000KRW 7,791,667KRW 757,336,979
42KRW 221,253,685KRW 25,001,457KRW 0KRW 0KRW 4,655,556KRW 0KRW 3,125,000KRW 7,780,556KRW 774,557,881
43KRW 221,799,357KRW 25,131,365KRW 0KRW 0KRW 4,644,444KRW 0KRW 3,125,000KRW 7,769,444KRW 791,919,802
44KRW 222,346,374KRW 25,261,667KRW 0KRW 0KRW 4,633,333KRW 0KRW 3,125,000KRW 7,758,333KRW 809,423,135
45KRW 222,894,740KRW 25,392,361KRW 0KRW 0KRW 4,622,222KRW 0KRW 3,125,000KRW 7,747,222KRW 827,068,274
46KRW 223,444,458KRW 25,523,451KRW 0KRW 0KRW 4,611,111KRW 0KRW 3,125,000KRW 7,736,111KRW 844,855,614
47KRW 223,995,533KRW 25,654,936KRW 0KRW 0KRW 4,600,000KRW 0KRW 3,125,000KRW 7,725,000KRW 862,785,549
48KRW 224,547,966KRW 25,786,817KRW 0KRW 0KRW 4,588,889KRW 0KRW 3,125,000KRW 7,713,889KRW 880,858,478
49KRW 225,101,762KRW 25,919,097KRW 0KRW 0KRW 4,577,778KRW 0KRW 3,125,000KRW 7,702,778KRW 899,074,797
50KRW 225,656,924KRW 26,051,775KRW 0KRW 0KRW 4,566,667KRW 0KRW 3,125,000KRW 7,691,667KRW 917,434,905
51KRW 226,213,455KRW 26,184,854KRW 0KRW 0KRW 4,555,556KRW 0KRW 3,125,000KRW 7,680,556KRW 935,939,204
52KRW 226,771,358KRW 26,318,333KRW 0KRW 0KRW 4,544,444KRW 0KRW 3,125,000KRW 7,669,444KRW 954,588,093
53KRW 227,330,637KRW 26,452,215KRW 0KRW 0KRW 4,533,333KRW 0KRW 3,125,000KRW 7,658,333KRW 973,381,974
54KRW 227,891,296KRW 26,586,500KRW 0KRW 0KRW 4,522,222KRW 0KRW 3,125,000KRW 7,647,222KRW 992,321,253
55KRW 228,453,337KRW 26,721,190KRW 0KRW 0KRW 4,511,111KRW 0KRW 3,125,000KRW 7,636,111KRW 1,011,406,332
56KRW 229,016,765KRW 26,856,286KRW 0KRW 0KRW 4,500,000KRW 0KRW 3,125,000KRW 7,625,000KRW 1,030,637,617
57KRW 229,581,582KRW 26,991,788KRW 0KRW 0KRW 4,488,889KRW 0KRW 3,125,000KRW 7,613,889KRW 1,050,015,516
58KRW 230,147,792KRW 27,127,698KRW 0KRW 0KRW 4,477,778KRW 0KRW 3,125,000KRW 7,602,778KRW 1,069,540,436
59KRW 230,715,399KRW 27,264,016KRW 0KRW 0KRW 4,466,667KRW 0KRW 3,125,000KRW 7,591,667KRW 1,089,212,786
60KRW 231,284,405KRW 27,400,746KRW 0KRW 0KRW 4,455,556KRW 0KRW 3,125,000KRW 7,580,556KRW 1,109,032,976

Issues that must be reviewed with the result

  • At least one claim group has a cash-payment present value below its entered liquidation floor. Review non-cash rights and creditor consent as well.
  • The claim-group liquidation floors do not equal net liquidation value. Check unallocated or duplicated amounts.
  • New funding is an assumption until court approval, financing or investment is confirmed. Stress a delayed inflow separately.
  • The calculator does not decide claim classification, priority or equal treatment. Review Articles 217–218 and creditor-level evidence professionally.
  • This is a five-year DCF reference based on user assumptions. It does not replace a formal going-concern or liquidation valuation by the examiner, court or accounting professionals.

Documents to prepare for professional review

  • Three years of financial statements, monthly cash records and order support
  • Creditor list, claim-review schedule and draft terms by claim group
  • Collateral appraisal, senior claims and recovery support
  • Tax notices, payroll, retirement benefits and common-benefit review
  • Asset due diligence, liquidation adjustments and disposal-cost support
  • New-funding documents, court approval status and confirmed timing

Related calculators

A 60-month cash test before a Korean corporate rehabilitation plan

A plan can appear generous on paper and still fail when the company reaches a month in which payroll, tax, capital expenditure and creditor payments exceed available cash.
This calculator builds a month-by-month operating forecast, overlays four claim-group schedules, discounts the resulting business cash flow and compares the five-year reference value with an entered liquidation-value estimate.
It also shows whether the entered distribution by claim group reaches the user-assigned liquidation-value floor and when a revenue stress scenario first creates a cash shortfall.

The result is a five-year DCF and liquidity planning reference, not the court-appointed examiner’s official going-concern valuation, a rehabilitation plan, a claim allowance or a prediction of confirmation.
Seoul Bankruptcy Court practice materials describe a normally longer forecast, often ten years, plus terminal value and non-operating assets, so professional valuation assumptions may differ materially from this deliberately compact 60-month model.

What the calculator keeps separate

Operating cash flow

Revenue, variable cost, fixed cost, taxes, capital expenditure and working-capital movement are projected independently from creditor distributions.

Plan cash payments

Public-interest, secured, priority and general claim schedules keep repayment rate, grace period, term and interest visible by group.

Value comparison

Discounted operating cash flow, a terminal reference and non-operating assets are compared with a separately entered liquidation-value estimate.

Liquidity stress

Base, user-selected revenue decline and an expanded decline show the first negative-cash month and the peak funding gap.

Keeping these layers separate prevents two common errors.
First, a high going-concern reference does not prove that monthly plan payments are fundable.
Second, enough closing cash does not prove that every creditor group meets the liquidation-value protection requirement or the statutory standards for fair, equitable and equal treatment.

The calculation model

1. Monthly operating projection

Month-one revenue is grown at the entered annual revenue rate using a monthly compound factor.
Variable cost changes in proportion to revenue, while fixed cost grows with its own annual rate.
Taxes and statutory charges, capital expenditure and working-capital increase are entered as monthly cash outflows.
New funding is added in the selected month, and the beginning cash balance rolls forward through all 60 months.

2. Claim-group repayment schedules

Each group begins with an entered claim balance and a repayment rate.
The repayable principal is divided equally over the selected payment term after the grace period.
In this simplified convention, no cash payment or accrued interest is added during the grace period; monthly interest on the remaining cash-repayment principal begins with the first principal installment, and the schedule may extend beyond month 60 when the entered grace and term require it.
The liquidity table includes only payments due during the 60-month forecast, while the claim table also reports total scheduled payments and present value across the full entered schedule.

3. Five-year going-concern reference

Monthly operating cash flow is discounted at the entered annual discount rate converted to a monthly rate.
The model then annualizes month 60 operating cash flow, applies the terminal growth rate and discounts that terminal reference back to the valuation date.
Entered non-operating assets are added after discounting.
This simplified value is intentionally labelled a reference because it does not perform the asset, normalization, tax, working-capital, financing and industry analysis expected in an official examination.

4. Liquidation value and group floors

The liquidation estimate adds expected net recoveries from cash, secured assets, receivables, inventory, other assets and subtracts liquidation costs.
A separate liquidation floor may be assigned to each claim group.
The calculator compares the present value of that group’s scheduled plan payments with its assigned floor and shows any shortfall, while also displaying liquidation value not yet allocated to a group.

5. Revenue sensitivity

The base case uses the entered revenue forecast.
The stress case reduces projected revenue by the selected percentage while leaving the entered cost and repayment assumptions in place.
The expanded case adds another ten percentage points, capped at a 50 percent decline, to expose how quickly liquidity deteriorates when sales fall further than expected.

Formula map and interpretation boundary

Corporate rehabilitation cash flow and value formula map
OutputSimplified calculationWhat it does not establish
Monthly operating cash flowRevenue minus variable cost, fixed cost, taxes, capital expenditure and working-capital increaseAllowed expenses, normalized earnings or an examiner-approved forecast
Closing cashOpening cash plus operating cash flow, new funding and minus plan paymentsLegal availability of cash or approval of new financing
Operating coverageTotal 60-month operating cash flow divided by 60-month plan cash paymentsProtection from a shortfall in a particular month
Forecast present valuePresent value of 60 monthly operating cash flowsAn official enterprise valuation
Terminal referenceMonth-60 annualized cash flow times one plus growth, divided by discount rate minus growth, then discountedA validated perpetual-growth assumption
Going-concern referenceForecast present value plus terminal reference plus non-operating assetsCourt confirmation or proof that rehabilitation is economically preferable
Liquidation valueEntered net asset recoveries minus entered liquidation cost, floored at zeroAn appraisal or a court-appointed examiner’s liquidation analysis
Group floor shortfallAssigned liquidation floor minus present value of group plan payments, floored at zeroA final legal conclusion on liquidation-value protection

Step-by-step workflow

  1. Fix one valuation date.
    Reconcile cash, receivables, inventory, secured assets, creditor balances and unpaid operating obligations to the same date.
    Mixing a current cash balance with an older creditor schedule can make both liquidity and liquidation comparisons unreliable.
  2. Build the operating case before adjusting claims.
    Use realistic sales, variable cost, fixed cost, taxes, capital expenditure and working-capital needs.
    Exclude one-time optimism that has no contract, backlog or documented operational support.
  3. Separate claims by legal and economic position.
    Reconcile public-interest claims, secured rehabilitation claims, priority claims and general rehabilitation claims with counsel and the creditor schedule.
    The four labels in this planning tool do not replace the court’s classification or claim investigation.
  4. Enter repayment terms group by group.
    Record repayment rate, grace period, payment term and cash interest rather than entering only a final aggregate distribution.
    This reveals whether a front-loaded group creates a cash bottleneck even when the total five-year result looks positive.
  5. Prepare liquidation inputs from realizable net proceeds.
    Reduce book values for security interests, collection risk, distressed-sale discounts, taxes and transaction costs.
    Enter liquidation cost separately and document who supplied each recovery estimate.
  6. Allocate the liquidation floor without duplication.
    Assign a supportable amount to each group and compare the allocation total with overall liquidation value.
    Unallocated value and excess allocation are signals to reconcile the creditor and collateral analysis, not values to hide.
  7. Run at least three revenue cases.
    Review the base case, the selected stress decline and the expanded decline.
    Record the first shortfall month and peak funding gap, then test whether operational changes or revised timing can resolve the specific bottleneck.
  8. Print the assumptions with the result.
    Give counsel, the accountant and the restructuring adviser the underlying schedules rather than only the headline value.
    A reproducible model is useful because every challenged assumption can be replaced without losing the cash-flow trail.

Worked example from the initial screen

The supplied example starts with KRW 200,000,000 cash, KRW 200,000,000 monthly revenue, KRW 120,000,000 variable cost and KRW 50,000,000 fixed cost.
Monthly taxes and statutory charges are KRW 5,000,000, capital expenditure is KRW 3,000,000 and working-capital increase is KRW 2,000,000.
Revenue grows 3 percent annually, fixed cost grows 2 percent annually and KRW 100,000,000 of new funding arrives in month six.
The discount rate is 12 percent, terminal growth is 1 percent and non-operating assets are KRW 100,000,000.

Default worked example output
ResultAmountReading
Five-year going-concern referenceKRW 2,872,539,168Forecast present value, terminal reference and non-operating assets
Entered liquidation valueKRW 680,000,000Net recoveries after KRW 100,000,000 liquidation cost
Reference value differenceKRW 2,192,539,168Going-concern reference minus liquidation value
Plan payments during 60 monthsKRW 606,500,000Principal and interest paid within the forecast horizon
Operating coverage ratio2.33xTotal operating cash flow divided by forecast-horizon plan payments
Group floor shortfall totalKRW 122,434,747Sum of positive differences between assigned floors and group payment present values
Expanded stress first shortfallMonth 18Revenue decline expanded from 20 percent to 30 percent
Expanded stress peak funding gapKRW 440,910,111Largest negative cash balance in the 60-month expanded stress case

The positive KRW 2.19 billion value difference does not cure the group-floor shortfall or the month-18 stress failure.
The useful conclusion is therefore not simply that going-concern value is higher, but that distribution design, assigned floors and downside liquidity still require reconciliation.

Legal framework checked on August 29, 2026

The current Debtor Rehabilitation and Bankruptcy Act was checked through Korea’s official National Law Information Center OPEN API under law ID 009930 and master text sequence 267359.
The current overall text displays an effective date of March 1, 2026, while the provisions cited for this model display article-specific effectiveness from June 21, 2025.
The calculator stores the verification date and official identifiers so future maintenance can compare the same source trail.

Official Korean rehabilitation law provisions used to define the calculator boundary
ProvisionPlanning relevanceCalculator boundary
Articles 118 and 141Define rehabilitation claims and secured rehabilitation claims in the statutory framework.The four input groups are planning buckets and do not decide claim allowance or classification.
Article 140Addresses remission or deferment of taxes and similar claims, including authority opinion or consent depending on the treatment.An entered public-claim schedule does not evidence authority consent.
Articles 179 and 180Identify common-benefit claims and provide for payment outside the plan with priority over rehabilitation claims and secured rehabilitation claims.The public-interest input must be reconciled with actual statutory status and payment timing.
Articles 217 and 218Provide the framework for fair and equitable differences by rank and equality within plan treatment.A uniform numeric recovery rate is not by itself proof of lawful equality.
Article 222Allows a liquidation or transfer-oriented plan where liquidation value exceeds going-concern value.The displayed comparison is informational and cannot select the legally appropriate plan form.
Article 243Includes lawfulness, feasibility and liquidation-value protection among confirmation requirements.A positive calculator result never predicts confirmation.
Article 286 paragraph 2Addresses discontinuance before confirmation when liquidation value exceeds going-concern value, subject to Article 222.The simplified five-year values do not replace the official investigation supporting that judgment.

The Supreme Court decision 2016Ma5352, precedent sequence 197160 and dated May 18, 2018, discusses liquidation-value protection, feasibility and equality in plan confirmation review.
Its feasibility discussion concerns whether the debtor can perform the plan and return to a sound condition without entering rehabilitation again, which is why this tool reports both aggregate coverage and the first negative-cash month.
The decision and formal examiner materials are legal and evidentiary sources; the calculator does not reproduce their fact-intensive judgment.

Documents that should support the inputs

Recommended evidence for corporate rehabilitation calculation inputs
Input areaPreferred evidenceConservative treatment
Opening cash and fundingBank statements, restricted-cash analysis, signed financing documents and draw conditionsExclude restricted cash and funding that is not committed.
Revenue and costsMonthly management accounts, tax invoices, backlog, payroll, leases and vendor contractsNormalize one-time revenue and include unavoidable restructuring costs.
Claim balancesCourt filing schedules, creditor confirmations, security documents, payroll and official noticesKeep disputed amounts visible and label their status.
Repayment termsDraft plan, class schedules and authority or creditor negotiationsDo not infer consent from an illustrative cash schedule.
Asset recoveriesAppraisals, aging schedules, collection history, security ranking and sale-cost estimatesUse net realizable proceeds instead of book value.
Non-operating assetsOwnership records, valuation support and disposal-cost analysisExclude assets already reflected in operating cash flow or liquidation inputs when comparing values.
Discount and terminal ratesIndustry risk analysis, capital structure and professional valuation workpapersRun a range and keep the discount rate above terminal growth.
Group floorsCreditor-by-creditor liquidation waterfall and collateral allocationReconcile the sum to overall liquidation value and avoid double allocation.

Sensitivity checks worth saving

  • Reduce revenue while keeping fixed cost unchanged to expose the true operating leverage
  • Delay new funding by one, three and six months rather than assuming it always arrives on the selected date
  • Move secured and priority payments earlier to test front-loaded plan pressure
  • Increase working-capital needs when growth requires more inventory or slower receivable collection
  • Reduce receivable and inventory liquidation recoveries and increase liquidation cost
  • Raise the discount rate and lower terminal growth together for a conservative value range
  • Remove non-operating assets already pledged, disputed or counted in another recovery line
  • Reallocate group liquidation floors using a creditor-level waterfall prepared by the adviser

Save each run with a short assumption label and date.
Changing one major assumption at a time makes it possible to explain whether the result moved because of operations, financing, plan design, asset recovery or valuation rather than presenting an opaque final number.

Common errors that distort the result

  • Using annual revenue as a monthly amount or mixing value-added-tax-inclusive and exclusive figures
  • Ignoring taxes, statutory charges, capital expenditure or working-capital cash needs because they do not appear in EBITDA
  • Entering book value as liquidation recovery without security ranking, collection risk or disposal cost
  • Counting the same non-operating asset in the going-concern reference and again without reconciliation in liquidation value
  • Treating public-interest claims, secured claims, priority claims and general claims as interchangeable labels
  • Using a repayment rate alone while omitting the entered post-grace cash interest and payment timing
  • Assuming a positive total coverage ratio prevents a negative cash balance in an individual month
  • Allocating more or less group floor value than total liquidation value without documenting the difference
  • Using a terminal growth rate at or above the discount rate, which makes the terminal formula invalid
  • Presenting the five-year reference as the official court valuation or the displayed warning as a legal conclusion

Frequently asked questions

Is a higher going-concern reference enough for confirmation?

No. Article 243 includes multiple requirements, including lawfulness, feasibility and liquidation-value protection. Classification, voting, evidence and the complete plan remain outside this calculator.

Why does the model use five years when the court manual refers to ten years?

The product roadmap calls for a 60-month liquidity forecast. The calculator adds a terminal reference after month 60, but a court-appointed examiner or valuation professional can use a longer explicit period and more detailed assumptions.

Are claim groups classified automatically?

No. The group labels make cash planning readable. Counsel and the court process must determine the statutory character, amount, security position and treatment of each actual claim.

Why can the floor shortfall remain when liquidation value is below going-concern value?

The overall value comparison and the allocation to particular groups answer different questions. A group can receive a present value below its assigned liquidation floor even when the aggregate going-concern reference is higher.

How does the simplified schedule treat interest during a grace period?

It records no payment and does not capitalize accrued interest during the grace months. Entered monthly cash interest begins with the first principal installment, so replace the tool output with adviser-prepared terms when the draft plan pays, defers or capitalizes interest differently.

What happens when a repayment schedule exceeds 60 months?

The monthly liquidity chart stops at month 60, but the claim summary calculates the entered full schedule and its present value for up to the supported schedule limit. The interface warns when payments continue beyond the forecast horizon.

Can new funding be entered even if it is not signed?

It can be used as a scenario, but the result should be labelled conditional. A feasible plan should separately document lender, amount, conditions, ranking and timing rather than relying on an uncommitted input.

Does a zero first-shortfall field mean the plan is safe?

It means the entered case did not produce negative cash during the modeled 60 months. It does not prove claim treatment, financing availability, valuation accuracy, legal compliance or performance after month 60.

Should taxes and public claims always be entered in one group?

No automatic classification is intended. Articles 140, 179 and 180 can make status and treatment important, so reconcile every public amount and payment timing with the responsible authority and counsel.

Can this output be filed with the court?

Use it as an internal worksheet and evidence checklist only. A filing requires the prescribed documents, creditor schedules, valuation work and professional review applicable to the actual proceeding.

Official sources and update boundary

Source checking was completed on August 29, 2026 through the National Law Information Center, Seoul Bankruptcy Court and the Supreme Court of Korea.
Statutes, court practice, valuation assumptions and the company’s evidence can change, so confirm the current official text and obtain case-specific Korean legal and accounting advice before acting.

Turn the value estimate into a fundable monthly plan

Print the base and stress cases, attach the creditor and asset schedules, and mark the evidence date behind every material assumption.
Review operating feasibility, claim treatment, liquidation floors and financing timing together with Korean restructuring counsel, the accountant and the valuation adviser.

This calculator is an informational planning aid and does not replace a court examination, valuation report, rehabilitation plan, legal opinion or accounting advice.