Japan Corporate Bankruptcies Hit 10-Year High

The number of corporate bankruptcies in Japan hit a 10-year high in the first half of 2024, marking the 3rd consecutive year of increase for the period, as labor shortages and inflation took their toll, a credit research company said, Kyodo News reported.

The failures, involving debts of at least 10 million yen ($62,200), rose 22% year-on-year to 4,931 cases in the six months.

The failures, involving debts of at least 10 million yen ($62,200), rose 22% year-on-year to 4,931 cases in the six months, according to Tokyo Shoko Research.

"There will be more companies unable to keep up with price rises from the ongoing weak yen, even if they pass on higher costs" to customers, a Tokyo Shoko Research official said, noting the possibility of surpassing more than 10,000 cases over a year.

Those caused by labor shortages increased by 2.2 times to 145 cases, hitting the highest for the period since the survey began in 2013.

Bankruptcies triggered by rising prices increased by 23.4% to 374 cases, while an additional 327 bankruptcies involved companies struggling to repay government-provided interest-free loans issued during the COVID-19 pandemic, Mainichi Japan also reported.