TOKYO: (Bernama-Xinhua) Corporate bankruptcies in Japan involving liabilities of at least 10 million yen (around US$61,600) climbed 7.1 per cent in the first half of 2026 from a year earlier, reaching 5,346 cases and surpassing 5,000 for the first time in 12 years, a credit research company survey showed Wednesday (July 8), reported Xinhua.
Tokyo Shoko Research attributed the increase partly to accelerating inflation amid a weaker yen, which is squeezing corporate finances, especially at small and medium-sized firms.
A persistent labour shortage is compounding the pressure, an official at the firm said, cautioning that bankruptcies may accelerate from fall.
Companies with fewer than 10 employees accounted for 90 per cent of the total, and those carrying liabilities under 100 million yen made up nearly 80 per cent.
Bankruptcies linked to price increases surged 27.6 per cent to 439 from the same period a year earlier, while failures related to labour shortages jumped 37.7 per cent to 237. Among those, cases involving soaring labour costs spiked 2.4-fold to 120, the survey found.
By industry, bankruptcies increased in eight of 10 sectors, with services posting the highest count at 1,819 cases, up 7.2 per cent, followed by construction at 1,026.
June alone saw bankruptcies surge 20.4 per cent year on year to 1,021, the first time the monthly figure topped 1,000 in 25 months. - Bernama-Xinhua
