The recent increase in interest rates by the Bank of Japan is expected to make things even more difficult for struggling businesses, potentially resulting in more bankruptcies among "zombie companies."

According to a report from Tokyo Shoko Research, the number of bankruptcies exceeded 5,000 cases for the first time in ten years between April and September, with a total of 5,095 firms affected. These companies collectively owe nearly ¥1.38 trillion ($9.2 billion) in debt, with the service industry being the most affected.

As the central bank moves away from its long-standing loose monetary policy, the financial situation for these vulnerable firms is becoming increasingly uncertain.