S.Korea's startup growth hits record on retired baby boomers

Startup growth in South Korea hit the monthly high as retired baby boomers set up businesses amid strong government support, central bank data showed Thursday.

The number of newly established firms registered in the court as a corporate body increased from 7,133 in June to 8,129 in July, according to the Bank of Korea (BOK).

The July figure was the highest since the BOK began compiling the data in January 1998, surpassing the previous high of 7,226 tallied in April 2014.

The record came as the government continued to help retired baby boomers set up companies as part of efforts to create jobs and bolster growth. An increase in working days from 19 in June to 23 in July also contributed to the record growth.

Corporate bankruptcy rose for two months in a row. The number of companies that went belly-up was 83 in July, up from 67 a month earlier.

Companies, which failed to redeem promissory notes and checks, trended down from 2013 because banks turned generous toward small companies in terms of loans.

The number of manufacturers going bankrupt increased from 32 in June to 40 in July, but the figure for service firms was unchanged at 28.

The default rate on corporate bills, including promissory notes, checks and bonds, came in at 0.21 percent in July, up 0.01 percentage point from the prior month.