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Personal bankruptcy filings remain high due to pandemic

People walk through a crossroads in Seoul, March 24, 2020. (Yonhap)

SEOUL, Oct. 3 (Korea Bizwire)The number of personal bankruptcy filings approached 50,000 last year amid a prolonged economic downturn resulting in part from the COVID-19 pandemic.

According to the National Courts Administration, the number of personal bankruptcy cases filed in courts across the country stood at 49,063 last year, down 2.6% from a year ago. .

The number of personal bankruptcies had been on a downward trend for more than ten years until 2018. However, it recovered in 2019 and jumped around 10.4% in 2020, surpassing 50,000 cases.

The number of corporate bankruptcy filings stood at 955 cases last year, similar to the level seen in 2020, when the figure hit a record high of 1,069 cases.

The number of corporate bankruptcy filings had followed an upward trend, rising from 699 cases in 2017 to 806 cases in 2018 and 931 cases in 2019.

The main reason why the number of personal and corporate bankruptcy filings remains high is the prolonged pandemic and accompanying economic crisis.

Meanwhile, the number of applications for personal pardons, which cancels remaining debts if the debt is faithfully repaid for a certain period, stood at 81,030 cases last year, down 6.4% from to a year ago.

JS Shin (js_shin@koreabizwire.com)