Corporate direct financing dives in Sept. on fall in bond sale
Currency traders are seen at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul. AP-Yonhap
Corporate direct financing in Korea dived in September as bond issuance sharply shrank amid fast-rising borrowing costs, data showed Thursday.
Local companies raised a combined 17.2 trillion won ($12.1 billion) by selling stocks and bonds last month, down 17.6 percent from a month earlier, according to the data from the Financial Supervisory Service.
Direct financing refers to raising funds directly from the stock and bond markets without borrowing from banks or other financial institutions.
Bond sales plunged 19.8 percent on-month to 16.4 trillion won in September, apparently affected by sharply rising borrowing costs due to the Bank of Korea's move to hike its policy rate to tame inflation.
Meanwhile, funds raised through stock markets in September doubled to 763.1 billion won over the cited period, the data showed. (Yonhap)