S. Korea`s direct financing dips 29.7 pct in Oct.

SEOUL, Nov. 21 (Yonhap) -- South Korean companies' direct financing shed 29.7 percent in October from a month earlier mainly because the issuance of bonds declined amid the global financial turmoil, the financial watchdog said Friday.
Local companies raised 6.74 trillion won (US$4.49 billion) by floating stocks and
bonds in October, compared with 9.59 trillion won the previous month, according
to the Financial Supervisory Service (FSS).
The issuance of shares jumped 83.8 percent month-on-month to 309 billion won last
month, the FSS said. The country's key stock index fell 23 percent in October.
Meanwhile, companies raised 2.25 trillion won by selling debts last month, down
43.6 percent from a month earlier, the watchdog said. Banks issued debts worth
4.18 trillion won last month, down 23 percent from the previous month.
The issuance of asset-backed securities tumbled 67.5 percent on-month to 150
billion won, 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.
sooyeon@yna.co.kr
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