South Korea sees decline in direct lending to companies in October

Data showed direct lending to South Korean companies fell in October compared to the previous month due to a significant drop in initial public offerings (IPOs). Local companies raised a total of KRW19.4tr (USD15.06bn) from stock and bond sales last month, compared with KRW23.78tr in September, according to data from the Financial Supervisory Service (FSS). It decreased by KRW4.36tr from the previous year. Direct financing refers to raising funds directly in the stock or bond market without receiving a loan from a financial institution, such as a bank. Stock sales decreased by 84.7% from KRW2.7tr in September to KRW413bn last month. Local companies raised about KRW226bn in 10 IPOs in October, compared to KRW597.3bn 9 IPOs in the previous month.