A record number of new companies were set up in October, fueled by people around retirement age entering the service sector, a government report showed Wednesday.

The report by the Small and Medium Business Administration said 5,074 companies were founded last month, up 5.2 percent from a year earlier.

“In terms of total numbers, last month represents the highest tally for October since the administration started keeping records in 2003,” it said.

It said growth was led by a 7.7 percent increase in service sector businesses, such as restaurants and small shops, that offset losses in manufacturing and construction areas.

The SMBA added that of those investors that launched small and medium enterprises last month, 11.9 percent were in their 50s and 7.9 percent in their 60s. Theses numbers are larger than all other age groups and may indicate a trend for retirees to seek alternative work.

By region, the number of new SMEs in the industrial city of Ulsan, 414 kilometers southeast of Seoul, surged 59.7 percent, while Incheon, west of the capital city, reported 26.4 percent more companies compared to the year before, the administration said.

(Yonhap News)