Corporate direct financing down for seventh straight month due to decreased stock, debt sale

Corporate direct financing fell for the second consecutive month in August due to a fall in both stock and bond sales, data showed on Wednesday.

Local companies raised a combined 16.33 trillion won ($12 billion) last month by selling stocks and bonds, down 10 trillion won, or 38 percent, from a month earlier, according to data from the Financial Supervisory Service (FSS).

Stock sales stood at 4.55 trillion won in August, falling 1.04 trillion won, or 69.5 percent, and corporate bond sales fell 8.97 trillion won, or 36 percent, to 15.88 trillion won over the cited period.

The value of outstanding corporate bonds stood at 768.85 trillion won as of the end of August, an increase of 1.89 trillion won, or 0.2 percent, from a month ago, the latest findings showed.

Yonhap