The number of new personal bankruptcy filings nearly quadrupled in the first nine months of the year, reflecting the economic slowdown, financial sources and the country's most senior court said Sunday.
The number of new personal bankruptcies stood at 85,455 through September this year, compared with 23,708 in the corresponding period of last year.
The nine-month figure is also more than double last year's total cases of 38,773, according to the sources and the Supreme Court. This year's bankruptcy filings may top 100,000 or 110,000, experts said.
The number of personal bankruptcy filings reached 3,856 in 2003, then 14,921 in 2004. Experts blamed the increase on the years-long economic slump and widening income gap.
The South Korean economy, Asia's fourth-largest, grew 4.6 percent annually in the third quarter of the year, slowing from a 5.8 percent annual gain the previous quarter, and is expected to fall further in the last three months of the year on a slump in private spending.
Next year, economic growth is widely expected to slow to a mid-4-percent rate following this year's 5 percent expansion.
"Decreased job offerings and household incomes should be blamed for the increase in personal bankruptcies," said Bae Sang-keun, a senior researcher at Korea Economic Research Institute.
Seoul, Nov. 19 (Yonhap News)
Personal bankruptcy filings nearly quadruple through Sept. |
