South Korean firms sharply reduced bond issuance in the first half of 2016, yet another sign of their worsening financial health amid a drawn-out economic slump, a government tally showed Thursday.

The value of ordinary corporate bonds issued in the six months totaled 18.9 trillion won ($16.7 billion), down 18.9 percent from a year earlier, according to the Financial Supervisory Service.


They preferred gilt-edged bonds. Among non-guaranteed corporate bonds issued during the period, worth 18.87 trillion won, those with AA or higher ratings accounted for 80.9 percent.

The ratio stood at 76.4 percent and 79.8 percent in the first and second half of last year, respectively.

Stock issuance by local firms, meanwhile, jumped 59 percent on-year to 3.56 trillion won during the January-June period. (Yonhap)