Principle and speed

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Principle and speed

This week, Daejudan, an association of creditors, will receive applications for self-regulating agreements. This is the beginning of triage decisions that will affect the life and death of construction companies and savings banks.

The resurrection of an organization responsible only for restructuring is the first in 10 years since the last financial crisis. It is not easy to decide which companies to let survive and which to let go bankrupt. Restructuring hinges on a clear principle. Also, to minimize the surgery’s side effects, it must proceed as speedily as possible.

First, it is important to clearly set an objective standard to stop an insolvent enterprise from doing business. Foremost, they should watch out against external influence. The organization’s clear independence must be guaranteed. The original spirit of a Daejudan agreement lay in halting the destruction of the entire economy by intercepting infectious insolvency of firms and banks.

Instead of killing firms, it proposes to save firms that can survive. Therefore, it is necessary to provide diversified support beyond market expectations, on the premise that firms make intensive efforts to save themselves. Only then can the market uncertainty lift and trust be restored.
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