Business Bankruptcies Jump Nearly 15%

The coronavirus epidemic is driving a growing number of small businesses into bankruptcy. According to monthly court statistics, 879 businesses were declared bankrupt in the first 10 months of this year, up 14.3 percent on-year.

The tourist island of Jeju suffered the highest number of bankruptcies, which soared 140 percent. A spokesman for the Jeju District Court said bankruptcies increased in the construction and hotel and travel sectors.

Personal bankruptcy cases also rose 8.7 percent over the same period to 41,257 while applications for individual rehabilitation declined 7.4 percent on-year.

To apply for rehabilitation, a person must report a steady income that is higher than the minimum cost of living, but it appears that most of those now in financial difficulties opted to declare bankruptcy because they are flat broke.