SEOUL, June 9 (Xinhua) -- South Korea's bond issuance rose last month due to a sharp increase in the sale of state bonds, industry data showed Friday.

The issuance of bonds, including government bonds, special bonds, monetary stabilization bonds, corporate bonds and financial bonds, totaled 97.7 trillion won (75.5 billion U.S. dollars) in May, up 21 trillion won (16.2 billion dollars) from the previous month, according to the Korea Financial Investment Association (KFIA).

The government bonds sale jumped 6.3 trillion won (4.9 billion dollars) to 29.3 trillion won (22.7 billion dollars) last month to offset reduced tax revenue, caused by economic downturn.

The issuance of financial bonds increased 10.7 trillion won (8.3 billion dollars) to 31.9 trillion won (24.7 billion dollars) in May, but the corporate bonds sale declined 2 trillion won (1.5 billion dollars) to 7.6 trillion won (5.9 billion dollars).

The outstanding bonds reached 2,698.4 trillion won (2.1 trillion dollars) at the end of May, up 37 trillion won (28.6 billion dollars) from a month earlier.