Number of corporate bankruptcies in Japan increased by 35.2 percent in 2023
It has been reported that corporate bankruptcies in Japan increased by 35.2 percent in 2023 compared to the previous year.
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Credit research firm Tokyo Shoko Research examined the status of corporate firms with debts of at least 10 million yen (68 thousand dollars).
The research revealed that the number of corporate firms that went bankrupt across Japan in 2023 increased by 35.2 percent compared to the previous year.
Accordingly, it was recorded that more than 8 thousand corporate firms initiated liquidation proceedings in Japan for the first time in the last 4 years.
Among the reasons leading to bankruptcy, rising raw material costs and increasing energy expenses were cited as the most significant factors in the research.
While an increase was observed in all 10 sectors examined, the service sector ranked first with the highest number of bankruptcies, with 2 thousand 940 cases.
The construction sector followed in second place with 1 thousand 693 bankruptcy cases.
The total financial liability left by companies that went bankrupt throughout the year rose to 2.4 trillion yen (16.4 billion dollars), an increase of 3.1 percent compared to the previous year.
Panasonic Liquid Crystal Display Co., which filed for liquidation in September 2023 with a debt of 583.6 billion yen (3.9 billion dollars), caused the highest financial liability.