S. Korea's corporate failures edge up in November

(ATTN: CHANGES dateline; UPDATES with minor changes and KCCI's retail survey in last
two paras)
SEOUL, Dec. 20 (Yonhap) -- The number of corporate bankruptcies in South Korea
slightly increased in November from a month earlier, the central bank said
Sunday, sending conflicting signals about domestic business conditions.

The number of business failures reached 135 last month, compared with 124 the
previous month, as more manufacturers and service providers went belly-up,
according to the Bank of Korea (BOK).
The November figure, however, marks a sharp fall from 297 in the same month last
year when the economy was in the midst of a global financial turmoil, the BOK
said.
During the reported month, the number of start-ups increased by 150 from a month
earlier to 4,690 last month amid rising hope of an economic recovery, the bank
said.
The default rate of corporate bills -- bonds, checks and promissory notes --
reached 0.04 percent last month, up 0.02 percentage point from the previous
month. The gain is largely attributable to an increase in forged notes, according
to the BOK.
A set of economic data are fueling optimism that the Korean economy is emerging
from its worst downturn in more than a decade. Asia's fourth-largest economy grew
3.2 percent in the third quarter from three months earlier, the fastest quarterly
expansion in more than seven years, on improving domestic demand and robust
exports.
The Korea Chamber of Commerce and Industry also said its retail business survey
index (BSI) for next year's first quarter climbed to 117, suggesting rising
expectations for a recovery from the protracted slump in consumer spending.
The survey was based on a poll of 945 retailers nationwide. A BSI reading of over
100 means the number of companies predicting business conditions will improve
outnumbers those expecting a deterioration.
pbr@yna.co.kr
(END)