The Ministry of SMEs and Startups (MSS) said on Dec. 2 that it signed a memorandum of understanding (MOU) with the Suwon Bankruptcy Court to promote technology transactions of bankrupt companies and to run a fast-track for small business rehabilitation and bankruptcy.
This agreement is the second case, following an MOU with the Seoul Bankruptcy Court in May. Through that agreement, the Ministry of SMEs and Startups (MSS) first introduced the regularization of technology transactions for bankrupt companies and a fast-track for small business rehabilitation and bankruptcy.
In the case of technology transactions for bankrupt companies, clear results emerged even in the pilot run conducted with the Seoul Bankruptcy Court before the MOU was signed. Of the 27 technologies that faced extinction in the bankruptcy process, 10 were matched in just three weeks and led to transfer contracts, and some of these were research and development outcomes of the central and local governments.
After the MOU was signed, in the technology transactions for bankrupt companies carried out with the Seoul Bankruptcy Court in August this year, a competitive bidding method was introduced to conduct matching when multiple corporations wanted to purchase the same technology. Of the 28 technologies up for sale, 15 ultimately led to transfer contracts, concluding at a total of 60.2 million won, about 23% higher than the initial announcement price.
The small business rehabilitation and bankruptcy fast-track is in pilot operation, with the Ministry of SMEs and Startups (MSS) Small Business New Start Support Center handling administrative support for rehabilitation and bankruptcy using experts, and the Seoul Bankruptcy Court in charge of swift review and mediation, providing faster and more comprehensive support for small business owners' comebacks.
From May, when the MOU was signed, through October, a total of 23 cases were filed with the Seoul Bankruptcy Court's small business rehabilitation and bankruptcy fast-track (dedicated panel) through the Small Business New Start Support Center, testing how much faster support can actually be provided compared with ordinary individual rehabilitation and bankruptcy cases.
The Ministry of SMEs and Startups (MSS) plans to actively review expanding to 12 rehabilitation and district courts nationwide, following the Seoul and Suwon bankruptcy courts, so that such successful cases of MOUs can spread nationwide and support more small and medium-sized enterprises and small business owners.
Noh Yong-seok, Vice Minister of the Ministry of SMEs and Startups (MSS), said, "Based on the results from the agreement with the Seoul Bankruptcy Court, this agreement with the Suwon Bankruptcy Court marks the entry into a full-fledged phase of institutionalization and expansion," adding, "We will actively support the technologies of bankrupt companies to bloom again in the market and help small business owners return to the economy more quickly through faster comebacks."