South Korea's financial regulator said Monday that it will provide financial support worth 6.4 trillion won ($5.6 billion) to stabilize its corporate debt market.

The so-called P-CBO issuance program will be widened to 6.4 trillion won to help cash-squeezed small builders and industrial companies raise funds through bond sales, according to the Financial Services Commission.

P-CBO is an acronym of primary collateralized bond obligation, a pool of bonds transferred by builders and other firms to a special purpose company that consists of senior and subordinated tranches.

Domestic companies had troubles in raising funds through bond sales as credit spread turned upward in the corporate debt market amid concerns over the earlier-than-expected end of the US quantitative easing.