Korea's direct financing dips 3.7 pct in August

SEOUL, Sept. 24 (Yonhap) -- South Korean companies' direct financing declined 3.7 percent in August from a month earlier as investor sentiment was dented by a global credit crunch and slumping stock markets, the financial watchdog said Wednesday.
Local companies raised 7.16 trillion won (US$6.24 billion) by floating stocks and
bonds in August, compared with 7.44 trillion won the previous month, according to
the Financial Supervisory Service (FSS).
The issuance of shares gained 28.2 percent month-on-month to 5,212 billion won
last month as, despite an absence of initial public offerings, some firms raised
capital by selling shares, the FSS said. The country's key stock index fell 7.55
percent in August.
Meanwhile, companies raised 3.56 trillion won by selling debts last month, down
12.8 percent from a month earlier, the watchdog said. Smaller firms' debt
offerings reached 7 billion won, down 75 percent from the previous month,
pointing to smaller companies' troubles of raising funds.
The issuance of asset-backed securities plunged 57.1 percent to 421.3 billion won
last month, the FSS said. Asset-backed securities are bonds or notes backed by
assets consisting of debt obligations such as car loans, home equity loans,
credit card receivables and student loans.