Corporate bankruptcy filings in South Korea reached 1,299 in the first half of this year, up 17.7% from 1,104 a year earlier and the highest first-half total since the Debtor Rehabilitation and Bankruptcy Act took effect in 2006. The six-month figure also exceeded the 1,069 filings recorded during all of 2020, at the height of the COVID-19 pandemic. Personal bankruptcy filings rose 10.3% to 21,899, their highest level since 2021, while individual rehabilitation filings increased 13.2% to a record 81,723. SME loan delinquencies reached 1.00% at the end of May, the highest in 11 years, while small-business sentiment fell to a six-month low. Analysts say declining sales and operating profits are weakening repayment capacity alongside existing debt burdens. The Korea Federation of SMEs said businesses most need expanded policy financing, maturity extensions and repayment deferrals, and the reinstatement of high-interest-rate subsidy programs.