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The number of bankrupt companies is surging, giving rise to calls for a swift government support and leniency from creditors.
Bank of Korea statistics released Wednesday show the number of bankrupt companies nationwide climbed by 118 or 58.1 percent to 321 in October, the largest rise since March 2005 (359).
By sector, bankruptcies of manufacturing business rose to 109, from 66 in September; construction from 49 to 65; and service from 74 to 133. By region, company bankruptcies increased from 80 to 111 in Seoul; and from 123 to 210 in provincial areas.
The bankruptcy rate added 0.01 percentage points to 0.03 percent from a month earlier. The number of start-up companies increased by a meager 304 to 3,975 in October. The ratio of start-up companies to bankrupt companies came in at 18.8, the lowest since December 2004 (14.9). The central bank said an increasing number of companies went bankrupt amid tougher credit conditions taken by banks amid the global financial crisis that started in September.
(englishnews@chosun.com )
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