In a recent case concerning shareholders’ contractual rights in rehabilitation proceedings, Korea’s Supreme Court held that a contract which grants the shareholders the right to consent to commencement of rehabilitation proceedings and right to damages if the company violates such right is consistent with the Debtor Rehabilitation and Bankruptcy Act (the “DRBA”), the principle of shareholder equality under the Commercial Code, and the principle of capital protection (Supreme Court Decision 2023Da210670, 13 July 2023). The significance of this judgment (“Judgment”) is explained below.