Number of bankruptcies falls for 2nd month in Feb.

SEOUL, March 19 (Yonhap) -- The number of South Korean corporate bankruptcies
declined for the second straight month in February mainly because teetering
construction firms went through restructuring, the central bank said Thursday.

Business failures totaled 230 in February, down 32 from the previous month,
according to the Bank of Korea (BOK). The number of corporate bankruptcies fell
for the second consecutive month in February, after hitting a near four-year high
in December, it added.
"A government economic stimulus package and rate reductions had some effects on
the economy and a corporate overhaul drive helped dispel uncertainty surrounding
troubling builders," said Lee Bum-ho, an official at the BOK said. "But it is too
early to say that the figure represents an upward trend."
In mid-January, local banks decided to end support to two ailing companies and
reschedule debts at 11 builders and three shipbuilders. The BOK said the number
of failed construction business dropped 32 to 36 last month.
The number of start-ups, meanwhile, rose by 563 to 4,227 in February. The ratio
of start-ups to business failures reached 30, hitting the highest level since
August 2008 when the rate reached 30.4, the BOK said.
The default rate of corporate bills -- bonds, checks and promissory notes -- was
0.04 percent last month, unchanged from the previous month, it added.
The South Korean economy shrank 5.6 percent on-quarter in the October-December
period, the worst performance in 11 years, due to tumbling exports and sluggish
domestic demand.
sooyeon@yna.co.kr
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