The number of business closures in South Korea exceeded 1 million in 2024 for the first time since records began in 1995. According to data released by the National Tax Service, a total of 1,008,282 individual and corporate businesses shut down last year, an increase of 21,795 from 2023.

The business closure rate also inched up to 9.04 percent, slightly higher than 9.02 percent in the previous year, marking the highest rate since 2020 (9.38 percent).

Closures were most concentrated in the retail and food service sectors, which together accounted for 45 percent of all shutdowns. Specifically, 299,642 retail businesses and 153,017 food businesses closed their doors in 2024.