South Korean firms have increased the issuance of new shares through October from a year earlier, data showed Friday, due mainly to the falling demand for corporate bonds amid a series of liquidity crises.

Local companies raised a combined 3.4 trillion won ($3.3 billion) through October from the stock market, surging 141.9 percent from the previous year, the data by Hyundai Securities Co. showed.

The tallied companies raised 866.2 billion won through initial public offerings, and issuance of new shares accounted for 2.6 trillion won.

In contrast, the amount of money raised from the bond market decreased 11.3 percent to 98.7 trillion won over the cited period, apparently as a spate of corporate defaults in recent months drove investors to seek after other investment destinations and induced local firms to depend more on issuing shares for financing.

Earlier this year, STX Group, the country's 13th-biggest conglomerate, saw its major affiliates struggle from liquidity shortages and mounting debt due to the downturn in the shipbuilding and shipping sectors.

South Korea's 38th-largest conglomerate, Tong Yang Group, filed for court receivership of its affiliates on Sept. 30 after failing to repay its massive maturing debts, leaving individual investors who bought the firm's bonds on the verge of losing their money.

Market watchers said the South Korean bond market is anticipated to remain in the doldrums down the road, due to a prolonged slump in ailing sectors such as the shipbuilding, construction and shipping industries. (Yonhap New)