Korea`s direct financing rises 33.8 pct in September

SEOUL, Oct. 14 (Yonhap) -- South Korean companies' direct financing gained 33.8 percent in September from a month earlier, but the issuance of shares sharply declined amid global financial turmoil, the financial watchdog said Tuesday.

Local companies raised 9.59 trillion won (US$7.76 billion) by floating stocks and
bonds in September, compared with 7.16 trillion won the previous month, according
to the Financial Supervisory Service (FSS).
But the issuance of shares tumbled 67.7 percent month-on-month to 168.1 billion
won last month as investor sentiment was chilled by tumbling global stock markets
sparked by the financial crisis, the FSS said. The country's key stock index fell
1.8 percent in September.
Meanwhile, companies raised 3.99 trillion won by selling debts last month, up
12.2 percent from a month earlier, the watchdog said. Banks issued debts worth of
5.42 trillion won last month, up 76 percent from the previous month.
The issuance of asset-backed securities inched up 9.4 percent to 461.1 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.