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coporate financing-May tally

Corporate direct financing up 12.7 pct in May

SEOUL, June 20 (Yonhap) -- Corporate direct financing in South Korea rose 12.7 percent in May from the previous month, data showed Tuesday.

Local companies raised a combined 22.8 trillion won (US$17.8 billion) by selling stocks and bonds last month, up 2.57 trillion won from April, according to 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 sales surged 234 percent on-month to 274.1 billion won from 82.1 billion won, while bond sales jumped 11.8 percent to 22.5 trillion won.

As of end-May, the value of outstanding corporate bonds had come to 629.3 trillion won, down 896.7 billion won from a month ago.

The data also showed that local firms issued commercial paper and short-term bonds worth 106.4 trillion won in May, down 4.9 percent from the previous month.

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