S.Korea's new company growth hits 5-year high in 2019
Source: Xinhua | 2020-12-10
South Korea's newly established companies hit the highest growth in five years in 2019 due to a spike in real estate companies, statistical office data showed Wednesday.
The number of newly created firms, which hired regular employees and generated sales, came in at 997,000 in 2019, up 8.4 percent from the previous year, according to Statistics Korea. It was the fastest expansion since 2014.
Of the total, the newly established real estate companies accounted for 25.3 percent, or 252,000, in 2019. It was up 7.5 percent from the previous year.
It was followed by new companies in the wholesale and retail industry, which took up 20.3 percent of the total, and new firms in the lodging and eatery segment that made up 16.7 percent last year.
Out of the combined new firms in 2019, 89.6 percent was the single-person business.
The number of companies that closed down was 692,000 in 2018, down 0.9 percent from a year earlier. It was the downturn from a 11.5-percent increase in 2017.
Of the total closed-down companies, 25.3 percent came from the wholesale and retail sector, followed by the real estate industry with 20.5 percent and the lodging and eatery segment with 20.0 percent each.
Over 91 percent of the total closed-down firms was the single-person business in 2018.
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