Half of bankrupt sole proprietors in S. Korea in the 50s

Half of bankrupt sole proprietors in S. Korea in the 50s

2014.02.10 16:13:59

Nearly one out of two self-employed in South Korea who went bankrupt last year was in their 50s, data showed.
This largely came as a growing number of baby boomers (born from 1955 to 1963) start their business after retirement, but most of them went bankruptcy due to lack of preparation. This means more people are leading a gloomy life over the remaining years after establishing a business. 
The number of the self-employed who went insolvent and had their bank accounts closed after dishonoring promissory notes at maturity reached 296 last year, according to the Korea Financial Telecommunications & Clearings Institute Monday.
Among them, 141 were aged between 50 and 59 (born between 1954 and 1963),accounting for 47.6 percent of the total.
The figure is twice as much as those in their 40S with 71 or 23.9 percent and 40s with 73 or 24.6 percent.
The share of those in their 50s out of the self-employed facing bankruptcy is on the rise.
The portion of the self-employed in their 50s stood at 44.0 percent in 2011 and 47.0 percent in 2012.
This is because more and more baby boomers (born between 1955 and 1963) nearing retirement set up their own business.
Indeed, among the self-employed in their 50s who went bankruptcy last year, 91.5 percent or 129 were in the baby boom generation.
The number of sole proprietors in their 50s continued an uptrend even as the total number of self-employed dwindled last year.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: