Personal bankruptcies surge to record high in first half

The number of personal and non-business bankruptcy filings in South Korea in the first half rose to a record high, according to data released by the country's Supreme Court and financial regulators Sunday.

The top court and financial regulators said the number of new personal bankruptcies reached 49,581 from January through June, up 3.6-fold compared to the same six-month period in 2005.

The number was larger than the 38,773 reported for all of last year.

Personal bankruptcy requests submitted to the court stood at 329 in 2000, but grew to 1,335 in 2002 and 12,317 in 2004.

Local think tanks speculated that eased criteria for filing for bankruptcy, a gradual rise in interest rates and a lack of jobs may have caused the increase.

"The growing number of personal bankruptcies can be a source of concern if it is not corrected soon," said Kim Yong-seong, a research fellow at the Korea Development Institute. He said with economic growth likely to decline in the second half, the number of personal bankruptcies could rise further.

Seoul, July 30 (Yonhap News)