South Korea's Financial Supervisory Service (FSS) has reported a decrease in corporate direct financing in the country by 6.7% on-year in H1 2022 as bond sales plunged amid a sharp increase in market rates. The FSS said that local companies raised a total of KRW114.5tr (USD87.1bn) by selling stocks and bonds in the January-June period, down KRW8.24tr tallied a year earlier. Direct financing refers to raising funds directly from the stock and bond markets without borrowing from banks or other financial institutions. Data showed that corporate bond sales dropped KRW14.05tr, or 12.7%, on-month to KRW96.15tr. The Bank of Korea has raised its key policy rate four times this year to tame high-flying inflation. The rate is currently at 2.25%.
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