S. Korea's start-ups hit near 7-year high in July

SEOUL, Aug. 20 (Yonhap) -- The number of South Korean start-ups rose to a near
seven-year high in July amid rising prospects for an economic recovery, the
central bank said Thursday.

The number of newly-established companies totaled 5,501 in July, up 108 from the
previous month and the highest monthly level since October 2002, according to the
Bank of Korea (BOK).
A set of economic data are stoking optimism that the Korean economy is emerging
from its worst downturn in more than a decade. Asia's fourth-largest economy grew
2.3 percent on-quarter in the second quarter, the fastest pace in over five years
on the back of massive economic stimulus packages.
Meanwhile, business failures stood at 129 last month, up four from the previous
month and marking the first rise in seven months, the BOK said.
"But the number of business failures in July hovered sharply below an average 202
posted between January and June," a BOK official said. The number of South Korean
corporate bankruptcies hit a record low in June.
The default rate of corporate bills -- bonds, checks and promissory notes --
reached 0.02 percent last month, unchanged from the previous month.
The government and the BOK have been scrambling to boost the slumping economy by
unveiling large-scale fiscal spending and trimming the policy rate. The BOK cut
its key rate by 3.25 percentage points to a record low of 2 percent between
October and February.
The central bank upgraded its growth outlook to a 1.6 percent contraction this
year, up from the previous estimate of a 2.4 percent fall. The government
projected a 1.5-percent decline for 2009.
sooyeon@yna.co.kr
(END)