Yen-Linked Bankruptcies Reach 50 in Seven Months, Outpacing Previous Years
- Tokyo Shoko Research counted five yen-related bankruptcies in July 2026, up 66.6% year on year.
- The January-July total reached 50, running ahead of the pace seen in earlier years.
- It was the third straight month above the year-earlier level, with cost pressure falling on smaller firms.
As the yen depreciates, small and medium-sized enterprises (SMEs) in Japan are facing unprecedented cost pressures. According to Tokyo Shoko Research, there were five bankruptcies related to yen depreciation in July, marking a 66.6% increase from the same period last year. This trend has been consistent for three consecutive months.
In this economic climate, SMEs face significant challenges. Yen depreciation not only increases the cost of imported raw materials but also diminishes the competitiveness of export goods. This is particularly detrimental to Japan's manufacturing and agricultural sectors that rely heavily on exports.
Taiwanese readers should pay attention to these developments as Taiwan has close economic ties with Japan, and yen depreciation could impact bilateral trade relations and industrial chain cooperation. Additionally, the survival status of SMEs affects overall regional economic stability.