Bond issuance in S. Korea plunges in July

SEOUL, Aug. 10 (Yonhap) -- Bond issuance in South Korea fell sharply in July from the previous month despite continued foreign buying, data showed Tuesday.

The value of bonds sold in Asia's fourth-largest economy stood at 68.7 trillion won (US$59.8 billion) last month, down 21.8 trillion won from a month earlier, according to the data from the Korea Financial Investment Association.

Last month's drop represents a drastic turnaround from an on-month increase of 18.2 trillion won in June.

Sales of corporate bonds dropped by 6.7 trillion won on-month to some 7.9 trillion won, with the issuance of state bonds decreasing by 7.7 trillion won.

Sales of currency stabilization bonds decreased by 1.3 trillion won, and those of environment, social and governance (ESG) bonds declined by 2.1 trillion won.

ESG bonds are a type of sustainability debt offering aimed at financing corporate activities in environmentally friendly and sustainable projects.

Foreign investors bought a net 13 trillion won worth of South Korean bonds in July, with their holdings of local bonds hitting an all-time high of 195.3 trillion won.

As of end-July, the value of outstanding bonds in the country stood at 2,419 trillion won, up 18.8 trillion won from the prior month.

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