139 firms went broke in 2003, registering a bankruptcy rate of 1.07 percent. The bankruptcy of local construction firms was found to be increasing. According to the construction activity outlook for 2004 released by the Construction & Economy Research Institute of Korea, 139 of 12,996 general construction firms went broke last year, registering a bankruptcy ratio of 1.07 percent. It means the insolvency ratio that stood at 0.39 percent in 2002 climbed to the 1 percent range. It is mainly due to the tightened deliberation by financial institutes on loan applications of construction firms and the strengthened standards for the exit of nonviable firms from the market.
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