Open Decision Ledger · Rehabilitation & bankruptcy
Standards for appraising the value of property subject to a rehabilitation security right on the assumption of the continuation of the enterprise
Translated from the Korean original. Read the Korean
Supreme Court, Sept. 7, 2017, 2016Da277682 (judgment)
Case name: 채권조사확정재판에대한이의의소
Official text on the National Law Information Center
Question
Must the value of real property that is the subject of a rehabilitation security right be appraised on the assumption of the continuation of the enterprise, or on the assumption of its disposition?
Holding
The appraisal of the value of property under Article 90 of the Debtor Rehabilitation and Bankruptcy Act takes, as its objective standard, the value premised on the continuation of the enterprise, and does not take as its basis the disposition value of individual assets premised on the dissolution or disposition of the enterprise. This applies equally to the calculation of value for the purposes of a rehabilitation security right under Article 141 (4), and appraisal methods such as the cost approach or the sales comparison approach may also be used where they are capable of expressing an objective value that takes the continuity of the enterprise into account.
Summary of the holding, verbatim
평가의 객관적 기준은 회사의 유지·회생 즉 기업의 계속을 전제로 평가한 가액이어야 하고 회사의 해산과 청산 즉 기업의 해체, 처분을 전제로 한 개개 재산의 처분가액을 기준으로 할 것이 아니다.
Unofficial English translation
The objective standard of appraisal must be the value appraised on the premise of the maintenance and rehabilitation of the company, that is, the continuation of the enterprise, and must not be based on the disposal value of individual properties premised on the dissolution and liquidation of the company, that is, the disintegration and disposition of the enterprise.
Disposition
Dismissed Stated in the decision
상고를 기각한다.
Unofficial English translation
The appeal is dismissed.
Form of the test
Elements stated Stated in the decision
기업의 계속을 전제로 평가한 가액이어야 하고
Unofficial English translation
must be the value appraised on the premise of the continuation of the enterprise, and
Factors
- 회사의 유지·회생 즉 기업의 계속을 전제로 평가한 가액
- 수익환원법 등 수익성의 원리에 기초한 평가방식
- 원가법 등 비용성의 원리에 기초한 평가방식
- 기업의 계속성을 감안한 객관적 가액을 표현할 수 있는 것이면 족하다
Unofficial English translation
• The value appraised on the premise of the maintenance and rehabilitation of the company, that is, the continuation of the enterprise
• Appraisal methods based on the principle of profitability, such as the income capitalization approach
• Appraisal methods based on the principle of cost, such as the cost approach
• It is sufficient that the method is capable of expressing an objective value taking into account the continuity of the enterprise
Relation to precedent
Follows earlier decisions Stated in the decision
대법원 1991. 5. 28.자 90마954 결정
Unofficial English translation
Supreme Court Decision 90Ma954 decided May 28, 1991
Decisions referred to
대법원 1991. 5. 28.자 90마954 결정(공1991, 1728)
Burden of proof
Not addressed Not in the decision
Open question and revisit condition
Where a resale-restriction covenant is attached to the secured property, so that the legal relations upon disposition affect its value, how should that covenant be reflected in an appraisal premised on the continuation of the enterprise as a going concern?
This reading will be checked again if the appraisal standards under Article 90 or Article 141 (4) of the Debtor Rehabilitation and Bankruptcy Act are amended, or if a decision takes a different view of the method for appraising the value of a rehabilitation security right.
Cross-family AI independent reading & axis check
7 of 8 axes matched GPT-6 Astra (OpenAI, codex CLI) · 2026-10-16
When compared with an independent reading by another AI in the same family (GPT-6 Astra), which read only the original text without seeing the first reading, 7 of the 8 axes matched, and the readings diverged on the eighth axis (Open question and revisit condition).
Axis 8 (Open question and revisit condition): Primary “Where a resale-restriction covenant is attached to the secured property, so that the legal relations upon disposition affect its value, how should that covenant be reflected in an appraisal premised on the continuation of the enterprise as a going concern?” vs Independent “Where the several permissible appraisal methods produce different values, which appraisal result must be given priority?”
The first reading asks how a resale-restriction covenant is to be reflected in the appraisal, whereas the independent reading asks which result is to be given priority when the results of several appraisal methods differ.
평가의 객관적 기준은 회사의 유지·회생 즉 기업의 계속을 전제로 평가한 가액이어야 하고 회사의 해산과 청산 즉 기업의 해체, 처분을 전제로 한 개개 재산의 처분가액을 기준으로 할 것이 아니다.Raw responses and comparison record: Protocol · Blind readings (JSONL) · Axis comparison (JSONL) · SHA-256 (JSON)
Lower-court contrast & scope of application
Lower-court reading vs. Supreme Court holding
Lower-court context: The court below (Seoul High Court, Case 2015Na2062546) held that the value of the real property in this Case, which is the subject of the rehabilitation security right, must be appraised on the premise that Emtek Vision retains the real property and conducts its business activities, and that it therefore must not be calculated on the basis of acquisition cost premised solely on a situation of resale in violation of the resale-restriction covenant. It then appraised the value of the real property at the appraised value of 91,558,000,000 won as of March 31, 2013, around the time of the order commencing rehabilitation proceedings.
Supreme Court standard: After confirming the legal principle governing appraisal premised on the continuation of the enterprise as a going concern, the Supreme Court found no misapprehension of legal principles or failure to exhaust deliberations in the court below's determination concerning the appraisal of the value of property subject to a rehabilitation security right or the valuation of rights relating to gains on resale, and dismissed the defendant's final appeal.
Distinguishing conditions
- A case in which property is appraised on the premise of liquidation, as in bankruptcy proceedings rather than rehabilitation proceedings
- A case in which the secured property is scheduled to be sold under the rehabilitation plan, so that its disposition value is substantively at issue
- A case in which the appraisal was conducted mainly on the basis of disposition value without taking the continuity of the enterprise into account
Record verification notes
Before contesting the value of property subject to a rehabilitation security right, it needs to be checked as of which date the appraisal was made, whether it was premised on continued retention or on disposition, and whether the rehabilitation plan schedules a sale.
From the official text
Points at issue
채무자 회생 및 파산에 관한 법률 제90조에 의한 재산가액 평가의 객관적 기준(=기업의 계속을 전제로 평가한 가액) 및 이때 재산가액의 평가방법 / 이는 같은 법 제141조 제4항에 따라 회생담보권의 목적의 가액을 산정할 때도 마찬가지인지 여부(적극)
Unofficial English translation
The objective standard for the valuation of property under Article 90 of the Debtor Rehabilitation and Bankruptcy Act (= the value appraised on the premise of the continuation of the enterprise) and the method of appraising the value of property in that case / Whether the same applies when calculating the value of the object of a rehabilitation security right under Article 141, paragraph (4) of the same Act (affirmative)
Summary of the holding
채무자 회생 및 파산에 관한 법률(이하 ‘채무자회생법’이라고 한다) 제90조에 의한 재산가액의 평가에 있어서 평가의 객관적 기준은 회사의 유지·회생 즉 기업의 계속을 전제로 평가한 가액이어야 하고 회사의 해산과 청산 즉 기업의 해체, 처분을 전제로 한 개개 재산의 처분가액을 기준으로 할 것이 아니다. 이때 그 가액의 평가방법은 수익환원법 등 수익성의 원리에 기초한 평가방식이 표준적인 방식이라고 할 수 있으나, 재산의 종류와 특성에 따라 원가법 등 비용성의 원리에 기초한 평가방식이나 거래사례비교법 등 시장성의 원리에 기초한 평가방식이라도 기업의 계속성을 감안한 객관적 가액을 표현할 수 있는 것이면 족하다. 이는 채무자회생법 제141조 제4항에 따라 회생담보권의 목적의 가액을 산정함에 있어서도 마찬가지이다.
Order
상고를 기각한다. 상고비용은 피고가 부담한다.
Unofficial English translation
The appeal is dismissed. The costs of the final appeal shall be borne by the defendant.
Provisions referred to
채무자 회생 및 파산에 관한 법률 제90조, 제141조 제4항
Read 2026-10-16 · Cross-read 2026-10-16. All quotes matched against the official text. The Chinese-character placeholders the court used for anonymised parties are given in their Korean readings, and parenthetical Chinese-character glosses are omitted.
Every entry is published only after all quotes have been matched character by character against the official text, and audited by an independent second reading from a different model family across all eight axes. Both agreed axes and text-grounded interpretive divergences are recorded openly. The ledger is a research record, not an assessment of the court or advice on any matter.
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