TOKYO - CORPORATE bankruptcies in Japan jumped 15.7 per cent in 2008 as the global financial crisis tore through Asia's biggest economy, a private survey showed on Tuesday.

Last year 12,681 companies went under in Japan, leaving combined debts of 11.91 trillion yen (S$198 billion) - more than double the previous year, Teikoku Databank said.

The local unit of failed Wall Street giant Lehman Brothers was the biggest casualty, collapsing with debts of 3.43 trillion yen, the second largest in Japan's post-war history, it said.

The transportation and communications sectors saw the most bankruptcies, followed by the construction and wholesale industries, due to the recession and high raw material costs.

While Japan's banks have been relatively immune to the global financial crisis compared with their US and European peers, many companies are finding it harder to borrow funds due to the credit crunch.

In December alone, Japan recorded 1,147 bankruptcy cases, up 44.7 per cent from a year earlier, Teikoku Databank said.

Japanese manufacturers have slashed thousands of jobs and some have idled factories temporarily to deal with slumping demand. -- AFP

Is this article useful to you?