S. Korea's direct financing shrinks 20.7 pct in April

SEOUL, May 15 (Yonhap) -- South Korean companies' direct financing fell 20.7 percent in April from a month earlier as fewer firms sold bonds, the nation's financial watchdog said Friday.

Local companies and banks raised a combined 10.99 trillion won (US$8.7 billion)
in April by selling stocks and bonds, compared with 13.86 trillion won the
previous month, the Financial Supervisory Service (FSS) said in a report.
"The drop came as issuers reduced bond selling following three months of heavy
sales," an FSS official said.
In the wake of stabilizing equity markets, cash-strapped local companies scurried
to raise money to boost their cash bases in an effort to battle the global
economic slowdown.
The key index KOSPI gained 23 percent so far this year after rising 14 percent in
April alone.
Corporate debt financing stood at 10.39 trillion won last month, down 24.6
percent from the previous month. Corporate funding by stock sales, however,
jumped 672 percent to 601 billion won last year as more firms went public and
increased rights offerings amid bullish stock markets, according to the FSS.
pbr@yna.co.kr
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