Corporate direct financing drops 30 pct in May

Direct financing by South Korean companies sank 29.3 percent in May as firms refrained from raising money in sluggish stock and bond markets, the financial regulator said Wednesday.

Local companies raised a total of 8.85 trillion won (US$7.60 billion) last month by selling stocks and bonds, compared with the 12.5 trillion won the previous month, according to the Financial Supervisory Service (FSS).

In the first five months of this year, corporate direct financing dropped to 49.5 trillion won from 56.2 trillion won a year ago, the FSS added.

The on-month drop in corporate direct financing came as companies stayed away from securing money through selling stocks and bonds due to the persistent market slump, the regulator said.