The number of corporate bankruptcies in Japan in the first six months of 2023 rose 32.1% from a year earlier to a five-year high of 4,042, as businesses took on increased debt to stay afloat amid the COVID-19 pandemic, a survey by a credit research company showed Monday.
The rise in failures involving liabilities exceeding ¥10 million ($70,000) comes as many companies have begun repaying interest-free and unsecured loans, which lenders extended under a government program in response to the pandemic, Tokyo Shoko Research said.
Rising material and labor costs have also affected businesses, the research firm said.