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Korean companies going bust reach record high this year

Collected: 2016.12.26

Distributed: 2016.12.27

Source: Go Direct

In another bleak data suggesting how bad the Korean economy is, troubled companies that turned to local bankruptcy courts reached record level of 1,533 as of November this year, 200 more than 1997 when the country sought international bailout due to financial crisis.

According to the Supreme Court of Korea, 659 firms filed for liquidation and 874 others for reorganization during the 11 months of the year. In Korean bankruptcy law, a company can liquidate assets and debt under court administration or earn time to normalize operation through debt freeze for a certain period. Liquidation cases where companies dissolve rose 22.7 percent on year as of November, while reorganization cases that allow a second chance to rebuild business increased just 4.3 percent.

When including December, corporate bankruptcy cases could reach 1,600 to 1,700 this year.

By Yoo Tae-yang

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