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▼ Japan Bankruptcies Top 10,000 For 2nd Straight Year In 2025
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The number of corporate bankruptcies in Japan surpassed 10,000 in 2025 for the second consecutive year amid a labor shortage and high prices, particularly affecting small and medium-sized enterprises, a survey by a credit research company showed Tuesday.
Business failures with debts of at least 10 million yen rose 2.9 percent from the previous year to 10,300, the highest level since 2013, with small-scale bankruptcies accounting for 76.6 percent of the cases, according to Tokyo Shoko Research.
Total liabilities were 1.59 trillion yen, down 32.1 percent from the previous year amid few large-scale bankruptcies.
By industry, the service sector, including restaurants, saw the highest number of bankruptcies at 3,478 cases, up 4.5 percent, followed by construction at 2,014, up 4.7 percent, and manufacturing at 1,186, up 3.9 percent.
The survey showed that bankruptcies resulting from labor shortages surged by 36.0 percent, reaching a record high of 397 cases. Additionally, business failures attributable to high prices increased by 9.3 percent, reaching 767 cases.
A Tokyo Shoko Research official predicted that corporate bankruptcies will "moderately increase" in 2026, citing rising interest rates, the impact of U.S. tariffs and deteriorating relations between Japan and China as notable concerns.
Business failures with debts of at least 10 million yen rose 2.9 percent from the previous year to 10,300, the highest level since 2013, with small-scale bankruptcies accounting for 76.6 percent of the cases, according to Tokyo Shoko Research.
Total liabilities were 1.59 trillion yen, down 32.1 percent from the previous year amid few large-scale bankruptcies.
By industry, the service sector, including restaurants, saw the highest number of bankruptcies at 3,478 cases, up 4.5 percent, followed by construction at 2,014, up 4.7 percent, and manufacturing at 1,186, up 3.9 percent.
The survey showed that bankruptcies resulting from labor shortages surged by 36.0 percent, reaching a record high of 397 cases. Additionally, business failures attributable to high prices increased by 9.3 percent, reaching 767 cases.
A Tokyo Shoko Research official predicted that corporate bankruptcies will "moderately increase" in 2026, citing rising interest rates, the impact of U.S. tariffs and deteriorating relations between Japan and China as notable concerns.
- 14/1 18:57
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