The new rehabilitation proceeding under the DRBL,1) which took into force as of April 1, 2006, unified two old rehabilitation procedures: (i) a reorganization procedure under the Corporate Reorganization Law (“CRL”), generally used by large companies, and (ii) a composition procedure under the Composition Law (“CL”),2) generally used by small- and medium-sized companies and individuals. Both rehabilitation procedures regulated the recovery of financially distressed firms in Korea for more than forty years since they were first enacted in 1962
