The default rate of corporate bills in South Korea declined last month after hitting a six-month high in April, central bank data showed Friday.

The default rate of corporate bills ― bonds, checks and promissory notes ― reached 0.16 percent in May, down from 0.22 percent the previous month, according to the Bank of Korea.

A bank official attributed the on-month slip to a fall in dishonored bills held by Tong Yang Group, whose five affiliates applied for court receivership in September on liquidity shortages.

A fall in default bills of a company based in Gangwon Province also affected the figure as a one-off factor, he added.

The central bank data, in addition, showed that the number of companies that went bankrupt reached 61 in May, down from 69 the previous month. (Yonhap)