Corporate Restructuring Promotion Act (``CRPA``) was enacted on July 18, 2001. Although officially proposed by congressmen, the CRPA was in fact drafted by the Ministry of Economy and Finance (``MOEF``) to establish statutory grounds for the Workout it had alresdy enforced, thus containing provisions similar to those in the Workout Accord. According to the CRPA, firms with loans over 50 billion KW from financial institutions are required to maintain internal accounting monitoring system. Financial institutions are to check credit risks of debtor firms according to the Monitoring Standard provided by Financial Supervisory Commission and take appropriate measures, such as financial institution management, corporate reorganization, composition and winding-up, against risk-exposed firms. In order to begin financial institution management, the major creditor financial institution is to call for the Council of Creditor Financial Institutions and further more acquire more than 3/4 of claims in amount to effectively adopt the Management Normalization Plan. The Plan involves new loans as well as debt restructuring such as hair-cut and extension of payment. Additionally, any creditor financial institutions have right to sell their claims to consenting institutions. While the original version of the bill contained several provisions which were allegedly unconstitutional, provisions stipulating automatic stay upon the call of the Council, high priority of mew loans in the reorganization procedure and constraint of suits over the value of claims were deleted by the Legislation and Judiciary Commission of the National Assembly; . Government intervention in corporate exit mechanisms, in the name of industrial rationalization measures and workout has been proved inefficient. In order to establish efficient exit mechanism, it is imperative to exclude government influence and establish clear rules that will enable debtors and creditors to bargain for their own benefits. However, the CRPA stops to simply provide legitimate but undesirable opportunity for the goverment to decide the exit of big firms.