Corporate direct financing grows 4.3 pct in February

SEOUL, Corporate direct financing in South Korea grew 4.3 percent from a month earlier in February, thanks to a rise in corporate bond issuances, data showed Tuesday. Local businesses raised a combined 26.5 trillion won (US$19.9 billion) by selling stocks and bonds last month, up 1.09 trillion won from the previous month, according to the data from the Financial Supervisory Service. Direct financing refers to raising funds directly from the stock and bond markets without borrowing from banks and other financial institutions. Stock issuances dipped 12.6 percent on-month to 242.8 billion won in February, but bond sales gained 4.5 percent to 26.2 trillion won over the cited period, according to the financial regulator. As of end-February, the value of outstanding corporate bonds came to 653.7 trillion won, up 4.89 trillion won from a month earlier. Local companies also issued 34.5 trillion won worth of commercial papers in February, down 7.2 percent from the previous month, and 62.4 trillion won worth of s hort-term bonds, down 7.9 percent from 67.7 trillion won issued in January. Source: Yonhap News Agency