Investment loss versus liquidation value: a Seoul court practice rule
An actual rule on investment-loss valuation separates asset assessment from rehabilitation and discharge outcomes.
Updated Oct 20, 2026
Investment losses in liquidation-value assessment
Seoul Bankruptcy Court practice rule 408 excludes stock and crypto investment losses when calculating hypothetical bankruptcy distributions in personal rehabilitation. It took effect in year 2022 month 7 day 1.
Concealment exception and approved plans
Concealing assets under the guise of investment failure is excepted, and supporting investigation materials may be required. Pending cases are covered, but previously approved plans retain their effect.
A calculation rule is not guaranteed approval
Loss valuation does not guarantee confirmation or discharge. Truthful asset and income evidence and the repayment plan require separate assessment.
Not an individual outcome promise
This Seoul court rule does not promise results across all courts or procedures. Check jurisdiction, current criteria and individual facts; do not use it to justify more borrowing or delaying advice.
Sources
- Seoul Bankruptcy Court: practice rule 408 and commencement provisionsAccessed Oct 20, 2026