[THE INVESTOR] South Korean firms sharply scaled down equity and bond sales in August, confronted with unrelenting uncertainties at home and abroad, government data showed on Oct. 6.

They raised 7.87 trillion won (US$7 billion) by selling stocks and bonds last month, down 27.6 percent from a month earlier, according to the Financial Supervisory Service.

Equity and debt issues fell by 19 percent and 28.1 percent, respectively. The issuance of ordinary corporate bonds plunged 75.6 percent to 340 billion won from July.

“August is a summer holiday season. And also, domestic companies were apparently cautious amid mixed prospects of the timing of the US interest rate hikes and other economic uncertainties,” an FSS official said.

Outstanding corporate bonds came to 412.8 trillion won as of end-August, up 0.2 percent from July.

Meanwhile, the issuance of commercial papers and asset-backed short-term bonds dropped 1.7 percent on-month to 117.7 trillion won.

(theinvestor@heraldcorp.com)