earticle

영어

The capital is becoming a very important factor in modern society. It is critical for both corporations and individuals to maintain sufficient levels of capital, and they rely on collateral systems for such maintenance. It is however widely acknowledged that the collateral system in Korea does not meet the demand for capital because corporation assets in the form of equipment or bonds cannot be utilized as collateral. The Bonds Collateral Law has been enacted to circumvent such limitations by allowing bonds as collateral. As a result, collateralizable items have been expanded to include not only real estates but also bonds. However, the problem of this law is that a comprehensive use of bonds as collateral is hindered by some provisions in the law. I here discuss how the Bonds Collateral Law can be improved to solve the problem of a restricted use of bonds as collateral. It is anticipated that the bonds can be widely used as a new type of collateral if the aforementioned problem in the Bonds Collateral Law is carefully inspected and continuously improved.