The number of South Korean corporate bankruptcies fell to a record low in March as more manufacturers and service-related companies stayed afloat than the month before, the central bank said Thursday.

The number of companies that went insolvent after defaulting on promissory notes declined to 90 last month from 94 in February, the Bank of Korea said.

“The change is so small, there is no distinct reason for the dip last month, although the country’s economy being able to pull off steady gains amid global uncertainties prevented manufacturers and service firms from going bankrupt,” said an economist at the BOK.

Only 35 manufacturers and 36 service companies filed for bankruptcy down by two and three, respectively, from the month before. The latest data, however, showed bankruptcies among construction firms rising by six to 17 in March, reflecting weak domestic market conditions for the building sector.

The BOK official added that because fewer companies resorted to the use of promissory notes in their business dealings, the number of bankruptcies, as measured by failure to honor such notes, have been on the decline in recent years.

Since May 2009, the number of insolvent companies has remained below 200 every month.

Meanwhile, the central bank said the number of new business start-ups came to 6,604 in March, up from 6,439 in the previous month.

The default rate of corporate bills ― bonds, checks and promissory notes ― remained flat from February at 0.01 percent last month, according to the BOK. (Yonhap News)