SEOUL, Nov. 30 (Xinhua) -- South Korea's corporate financing posted a double-digit growth in October owing to a record-low policy rate, financial watchdog data showed Monday.
Corporate financing through the issuance of stocks and bonds totaled 20.68 trillion won (18.7 billion U.S. dollars) in October, up 19.7 percent from the previous month, according to the Financial Supervisory Service.
It was attributable to the record-low policy rate that led to ample liquidity in the financial market.
The country's central bank has left its target rate unchanged at an all-time low of 0.50 percent since it cut the rate to the current level by 25 basis points in May. The bank slashed the key rate by 50 basis points in March.
The issuance of corporate bonds jumped 18.1 percent over the month to 19.44 trillion won in October.
Bonds, sold by industrial companies, advanced 24.2 percent to 2.85 trillion won, while those, floated by financial firms, picked up 24.9 percent to 13.9 trillion won.
The sale of asset-backed securities (ABS) soared 70.2 percent in October from a month ago.
Meanwhile, equity financing, including the initial public offering (IPO) and rights issuance, surged 52.5 percent over the month to 1.24 trillion won in October. (1 U.S. dollar equals 1,104.45 South Korean won) Enditem
