In May, Dishonored Bill Ratio of 0.04%

In May, the dishonored bill ratio was the lowest after the lapse of 11 years and 6 months.

According to ‘Trend of Dishonored bill ratio of May’ reported by Bank of Korea (BOK) on June 18, the dishonored bill ratio decreased to 0.04% over the last month (0.08%) on the basis of amounts. It was the lowest figure since December 1990 (0.04%).

Lee, Jongryeol, an assistant manager of financial market department of BOK analyzed that the nationwide dishonored bill ratio decreased because of the ample funds and no large amounts insolvency such as DAEWOO affiliates’ debentures.

In May the nationwide insolvent companies slightly increased to 317 companies over the last month (311 companies), but decreased considerably over the monthly average insolvent companies of the last year (440 companies).

Besides, new companies of May in 8 cities increased to 3647 companies over the last month and it shows the trend of active. The new companies were 23.8 times larger than insolvent companies keeping higher than 20 times. It reflects the active industrial activities through business recovery.

Sang-Chul Kim sckim007@donga.com