Assessing the Outcomes and Policy Implications of the Special Act on Corporate Revitalization

Jihwan Joo
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Jihwan Joo: Koea Institute for Industrial Economics and Trade

Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: The petrochemicals and steel industries are currently experiencing oversupply conditions, which are expected to persist over the medium term. In South Korea, business conditions have cast a spotlight on the Special Act on Corporate Revitalization, and specifically its provisions that support corporate restructuring. At present, small and medium-sized enterprises (SMEs) actively utilize the program.

However, current economic conditions require fundamental pan-industrial structural transformation, and such a transformation must feature participation by large enterprises and mid-sized firms in addition to SMEs. It is essential to reform relevant laws and institutional frameworks and to strengthen practical incentives to encourage participation by large enterprises or mid-sized firms and enhance the overall effectiveness and industrial impact of the restructuring program.

To achieve this, the government should offer more customized support for large enterprises, promote cooperative partnerships between large and small firms, and launch a foundation designed to facilitate collaborative business restructuring efforts as well as mergers and acquisitions.

Keywords: corporate restructuring; Special Act on Corporate Revitalization; SACR; oversupply; South Korea (search for similar items in EconPapers)
JEL-codes: K22 K23 (search for similar items in EconPapers)
Date: 2025
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Published in KIET Industrial Economic Review Vol. 30, No. 6

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