[THE INVESTOR] The number of local companies that file for bankruptcy court protection have increased rapidly this year, while the number of judges overseeing the firms remained the same, overwhelming the courts’ capacity to handle the cases, data showed on Sept. 20.
According to data by South Korea’s highest court, a total of 1,150 companies are under court receivership at 14 district courts across the country. The number increased by 100 firms from a year earlier as more companies sought bankruptcy protection, while a small number of firms exited the protection program. But the number of judges at the courts’ bankruptcy division has remain unchanged at 84, which means, a judge overseas 13 companies on average.
According to data by South Korea’s highest court, a total of 1,150 companies are under court receivership at 14 district courts across the country. The number increased by 100 firms from a year earlier as more companies sought bankruptcy protection, while a small number of firms exited the protection program. But the number of judges at the courts’ bankruptcy division has remain unchanged at 84, which means, a judge overseas 13 companies on average.
The figure is worse at the Seoul Central District Court, the court that handles around half of bankruptcy cases in the country. The Seoul court now manages 450 firms that are under court receivership, with the asset size totaling a whopping 27 trillion won (US$24.10 billion), including South Korea‘s largest container carrier Hanjin Shipping and shipbuilder STX Offshore & Shipbuilding.
However, only 18 judges are in charge of the bankruptcy filings at the Seoul court. As a result, each judge has to supervise 25 firms, raising concerns on the court’s capacity to handle all the cases.
By Ahn Sung-mi (sahn@heraldcorp.com)
