The number of Korean business failures shifted to an uptrend in April from a record low a month earlier amid a worsening corporate cash crunch, the central bank said Sunday.
The number of companies that went insolvent after defaulting on promissory notes soared to 110 last month from the previous month's 90, according to the Bank of Korea (BOK).
Insolvent service companies increased by 10 in April, with the manufacturing and construction sectors posting two and five more bankruptcies, respectively.
The central bank attributed the increase to increased competition in the service industry, sparked by a rise in the number of retired baby boomers setting up shop.
Due to the upturn, the default rate of corporate bills -- bonds, checks and promissory notes -- rose to 0.02 percent last month from 0.01 percent in March, the BOK said.
Meanwhile, the central bank said the number of start-ups came to 6,183 in April, down 421 from the previous month. (Yonhap)