SEOUL, Aug. 23 (Yonhap) — Corporate direct financing in South Korea saw a decline of 32.8 percent in July compared to the previous month, according to data from the Financial Supervisory Service.
A combined total of 16.07 trillion won (US$12.03 billion) was raised through stock and bond sales, which was 7.85 trillion won lower than in June. This type of financing is obtained from stock and bond markets, without borrowing from banks or other financial institutions.
The value of stock sales rose 58.6 percent month-on-month to 640.9 billion won, due to 12 initial public offering cases and seven paid-in capital increases. However, bond sales decreased 34.4 percent month-on-month to 15.4 trillion won as a result of rate hikes.
As of the end of July, the value of outstanding corporate bonds was 624.3 trillion won, a slight decrease of 0.1 percent from the previous month. Additionally, local firms issued 35.13 trillion won worth of commercial papers in July, a 2.5 percent increase from June, and 58.87 trillion won worth of short-term bonds, which was down 18.1 percent month-on-month.
nyway@yna.co.kr
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