Direct corporate financing in South Korea rose nearly 60% month-on-month in September

Headquarters of the Financial Supervisory Service (FSS) / Korea Times file

Direct corporate financing in Korea rose sharply in September from a month earlier amid a surge in debt sales, data showed on Tuesday.

Last month, local companies earned 31.6 trillion won ($22.9 billion) from selling stocks and bonds, up 11.55 trillion won, or 57.6 percent, from 20.1, according to the Financial Supervisory Service. trillion won in August.

Share issues fell 71 percent to 111.1 billion won from 383.7 billion won in the period.

Shares sold through initial public offerings fell 73.7 percent in the month to 61.8 billion won, while rights offerings also fell 66.8 percent to 49.3 billion won, according to the financial regulator. September from 148.6 billion won in the previous month, according to the financial regulator.

The increase in bond issuance more than offset the decline in stock sales.

Local enterprises issued 31.5 trillion won in bonds in September, up 11.8 trillion won, or 59.9 percent, from the previous month.

The value of outstanding corporate bonds at the end of September was 673 trillion won, up 11.7 trillion won from the previous month.

Local companies also issued 41.3 trillion won in commercial bonds in September, up 10.7% month-on-month, and 78.5 trillion won in short-term bonds, up 3.4% month-on-month. previously. (Yonhap)