S. Korea's direct financing falls 14.3 pct in July

SEOUL, Aug. 24 (Yonhap) -- South Korean companies' direct financing shrank 14.3
percent in July from the previous month due mainly to a cutback in their debt
sales, the financial watchdog said Monday.

Local companies and banks raised a total of 10.3 trillion won (US$8.3 billion) by
issuing stocks and bonds last month, compared with 12 trillion won in June,
according to the Financial Supervisory Service (FSS).
The slump in direct financing came as firms turned less to the capital market
following massive funding in the first half of this year. Local firms had
scurried to raise money by floating shares and debts to secure working capital
amid the global economic downturn.
In July, debt sales reached 9.3 trillion won, down 16 percent from a month
earlier, and stock floating inched down 0.1 percent to 1 trillion won, the FSS
said.
pbr@yna.co.kr
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