People walk across an intersection in Seoul on March 24, 2020. (Yonhap)
SEOUL, Oct. 3 (Korea Bizwire) — The number of personal bankruptcy filings neared 50,000 last year amid a prolonged economic slowdown resulting in part from the COVID-19 pandemic.
According to the National Court Administration, the number of personal bankruptcy cases filed in court across the country totaled 49,063 last year, down 2.6 percent from a year ago.
The number of personal bankruptcies had been on a downward trend for more than ten years until 2018. However, it took an upturn in 2019 and jumped by about 10.4 percent in 2020, surpassing 50,000 cases.
The number of corporate bankruptcy filings stood at 955 cases last year, similar to the level seen in 2020 when the figure reached an all-time high at 1,069 cases.
The number of corporate bankruptcy filings had been on an upward trend, rising from 699 cases in 2017 to 806 cases in 2018 and 931 cases in 2019.
The primary reason why the number of personal and corporate bankruptcy filings still remains high is the prolonged pandemic and the accompanying economic slump.
In the meantime, the number of applications for personal rehabilitation, which forgives remaining debts if the debt is faithfully serviced for a certain period of time, stood at 81,030 cases last year, down 6.4 percent from a year ago.
J. S. Shin (js_shin@koreabizwire.com)
