Koreas Direct Financing Up 46% in March

South Korean companies' direct financing jumped 46 percent in March from a month earlier as local firms increased stock and bond issuances, the financial watchdog said Thursday.

Local companies raised 6.58 trillion won ($6.75 billion) by floating stocks and bonds in March, compared with 4.51 trillion won the previous month, according to the Financial Supervisory Service.

The issuance of shares rose 69.5 percent month-on-month to 420.3 billion won despite a tepid stock market. South Korea's share prices slid 0.44 percent last month.

Meanwhile, companies raised 6.16 trillion won, or 44.6 percent more than in the previous month, by selling bonds in March, the watchdog said. Debt sales by non-financial firms jumped 142.9 percent on-month to 3.86 trillion won and financial companies' debt offerings reached 1.94 trillion won, up 7.9 percent from a month earlier.

The issuance of asset-backed securities fell 58.5 percent to 363.8 billion won in March, the watchdog said. Asset-backed securities are bonds or notes backed by assets, which consist of debt obligations including car loans, home equity loans, credit card receivables and student loans.