An invisible man, a double agent, and a five-tool player: Three issues for the Chief Restructuring Officer in Korean corporate reorganization procedures

The Chief Restructuring Officer (CRO) system in Korea was introduced in 2011 after the Debtor Reorganization Act adopted the Debtor-in-Possession (DIP) system in 2006. However, the introduction of the CRO system in Korea, which was based on the American system, was problematic due to the lack of legal grounds, the vagueness of its legal status, and the complexity of its roles. This article explores the emerging issues related to the status and roles of a CRO in the Korean corporate-reorganization procedure. Three major issues are analyzed: lack of legal ground and its codification (“Invisible Man”), the dual legal status of being a debtor's adviser and creditors' protector (“Double Agent”), and the expansion of the CRO's roles (“Five-Tool Players”). This research also sketches the legal landscape of corporate reorganization practice in Korea. It provides some possible suggestions to foster the chances for debtor rehabilitation through improved operation of the CRO system.