1. Case Overview
The Seoul Bankruptcy Court has been piloting the so-called "Comprehensive Consideration Method" as an alternative to the conventional practice known as the "Relative Shareholding Ratio Method." The traditional method requires that, for a rehabilitation plan to be approved, the final shareholding ratio of existing shareholders must be lower than the present value repayment ratio of rehabilitation creditors. In contrast, the new approach allows existing management to retain control of the company even after rehabilitation.

2. Background and Significance of the Decision
In this case, the debtor company, engaged in the manufacturing and sales of shuttlecocks, experienced a decline in sales due to the prolonged economic downturn following the COVID-19 pandemic. As a result, it was unable to cover fixed costs such as financial interest payments. The company filed for rehabilitation with the Seoul Bankruptcy Court on August 8, 2024, and a decision to commence rehabilitation proceedings was rendered on August 27, 2024.

At the time the proceedings commenced, the company's representative was its sole shareholder. Rather than submitting a rehabilitation plan based on the conventional "Relative Shareholding Ratio Method," the debtor submitted a plan based on the pilot "Comprehensive Consideration Method" currently being tested by the court. On April 1, 2025, the plan was approved with a record-breaking support rate of over 99% from the rehabilitation creditors and was subsequently confirmed by the court.

This case is expected to serve as a positive precedent in several respects: it illustrates how small businesses can actively utilize the rehabilitation process under the court’s policy-driven and supportive application of the Comprehensive Consideration Method; it demonstrates strong creditor engagement and support, as evidenced by the exceptionally high approval rate; and it highlights the motivational aspect of allowing the company's representative to retain management control after rehabilitation.