Corporate Restructuring

① Responding to a Financial Crisis

A company facing financial difficulties, such as excessive debt or declining profitability, carries out restructuring in order to restore its financial soundness and continue to survive.

② Changes in Ownership or Management

If a change of management or a transfer of ownership occurs, a need arises to newly reorganize the company's strategy and organizational structure.

③ Changes in the Market Environment

In order to adapt to abrupt changes in the external environment, such as shifts in consumer demand and technological innovation, a company must build a system suited to the new market situation through restructuring.

④ Business Expansion or Contraction

A company may pursue restructuring to improve operational efficiency when it expands its business in line with a growth strategy, or to reduce costs when it contracts its business.

⑤ Responding to Laws and Regulations

Situations may arise in which a company must adjust its operating methods or structure in accordance with new laws or regulatory requirements.

Securing Financial Stability

Strengthening Competitiveness

Focusing on Core Competencies

A company winds down or sells off business divisions with low profitability or insufficient growth potential and focuses on its core businesses.

At the same time, in order to secure new growth drivers, it establishes a strategy of entering promising business areas or expanding existing businesses.

This also includes cases in which a company focuses on research and development investment to strengthen its technological competitiveness and pursues the development and commercialization of new technologies.

To ease the financial burden, a company carries out debt adjustment by changing the terms of debt repayment, extending maturities, and adjusting interest rates.

It may also secure liquidity by selling off non-core assets, or revalue its assets to dispose of impaired assets.

Along with this, it strengthens its financial soundness by raising capital through means such as a paid-in capital increase or the issuance of convertible bonds.

To improve the organization's efficiency, a company reduces its workforce, or reassigns personnel to core areas in line with business reorganization.

It also reorganizes its organizational structure to align with its business strategy and improves the decision-making process to make it more efficient.

A workout is a program led by creditor financial institutions to improve a company's financial structure and support the normalization of its management.

Court receivership (rehabilitation proceedings) proceeds with the procedures for a company's rehabilitation under the supervision of the court, pursuing rehabilitation through means such as debt adjustment and the sale of assets.

Autonomous Restructuring Support (ARS) is a program that supports a company in improving its financial structure on its own and achieving the normalization of its management.

Corporate restructuring must be carried out transparently and fairly, in strict compliance with the relevant laws and procedures.

In particular, carefully checking and fulfilling the legal requirements at each stage, such as improving the financial structure, selling assets, and reducing the workforce, is indispensable.

If a workforce adjustment is unavoidable, it should be carried out according to objective and reasonable standards, and it must go through sufficient consultation with the labor union or the workers' representatives.

Through this, a company should prevent legal disputes such as unfair dismissal and maintain trust within the organization.

A company should transparently explain the restructuring plan and its progress to its various stakeholders, including creditors, investors, and executives and employees, and actively gather their opinions to build a smooth cooperative relationship.

This is an important factor in the successful execution of restructuring.

During the restructuring process, a company should closely examine its financial condition and implement measures to strengthen its financial soundness, such as debt adjustment and capital expansion.

Minimizing financial risk by obtaining advice from outside experts is also indispensable.

The business portfolio should be adjusted through a thorough analysis of external factors such as market changes, technological innovation, and the regulatory environment.

By responding promptly to these changes in the environment, a company can establish a foundation for sustainable growth.

Information concerning a company's financial condition and the restructuring as a whole should be disclosed to stakeholders accurately and transparently.

This helps secure trust and resolve uncertainty, thereby minimizing conflicts that may arise during the restructuring process.