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Corporate direct financing dips 6.7% in H1 on reduced debt sales


(123rf)

(123rf)

Corporate direct financing in South Korea decreased 6.7 percent on-year in the first half as bond sales plunged amid a sharp increase in market rates, data showed Thursday.

Local companies raised a total of 114.5 trillion won ($87.1 billion) by selling stocks and bonds in the January-June period, down 8.24 trillion won tallied a year earlier, according to the data from the Financial Supervisory Service (FSS).

Direct financing refers to raising funds directly from the stock and bond markets without borrowing from banks or other financial institutions.

Corporate bond sales dropped 14.05 trillion won, or 12.7 percent, on-month to 96.15 trillion won, the data showed.

The Bank of Korea has raised its key policy rate four times this year to tame high-flying inflation. The rate is currently at 2.25 percent.

Stock sales increased 5.78 trillion won or 45.8 percent on-year to 18.42 trillion won in the first half. (Yonhap)





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