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The Seoul Central District Court on Thursday said a total of 73 companies filed for court receivership from January until October, a threefold increase from the corresponding period last year, which was 22. Ten firms filed for receivership in September and 12 in October alone, setting all-time monthly records. Small- and medium-sized manufacturers including electronics makers made up the largest portion (32 companies or 43 percent), followed by construction firms (24 companies or 33 percent).

During the IMF crisis in 1997 and 1998, 200 to 300 companies asked the Seoul Central District Court for debt write-offs each year. The number leveled off to 20 to 30 per year after 2000.

Judicial circles say the increase is a warning sign for a serious surge in bankruptcies. Companies who hit a cul-de-sac face bankruptcy proceedings unless their application for court receivership is accepted. A total of 45 businesses filed for bankruptcy with the Seoul Central District Court from January until October this year, the same number as the whole of last year.

(englishnews@chosun.com )