Seoul, Jul 19 (IANS): Corporate bankruptcies in South Korea fell to a record low last month as local financial institutions eased lending attitude toward small businesses, central bank data showed Friday.

The number of companies that went belly-up decreased 13 from a month earlier to 58 in June, according to the Bank of Korea (BOK). The reading was the lowest since the bank began compiling the data in January 1990, reported Xinhua.

Companies, which failed to redeem promissory notes and checks, trended down this year as domestic lenders became generous toward small companies in terms of lending to meet the government's efforts to enhance their access to funding markets.

Use of promissory notes reduced among South Korean companies following the introduction of other borrowing tools such as a loan with accounts receivable as collateral.

The number of newly established firms decreased 423 from a month earlier to 6,065 in June. The ratio of start-ups to company failures was 163.9 last month, up from 122.4 in the prior month.

The default rate on corporate bills, including promissory notes and checks, came in at 0.08 percent in June, down from 0.12 percent in the previous month.