January Stock and Corporate Bond Issuance at 11.2 Trillion Won...Stock Decreases, Bonds Increase

[Asia Economy Reporter Park Jihwan] In January of this year, companies raised nearly 1.75 trillion KRW more in funds through stocks and corporate bonds compared to the previous month. Although the scale of initial public offerings (IPO) and paid-in capital increases significantly decreased, the increase in corporate bonds led to the overall rise.

According to the Financial Supervisory Service on the 25th, the issuance performance of companies through public offerings such as stocks and corporate bonds in January was 11.2056 trillion KRW, an increase of 1.7463 trillion KRW compared to the previous month.

A Financial Supervisory Service official explained, "Stock issuance saw a significant decrease in both IPO and paid-in capital increase performance, but despite a decrease in asset-backed securities (ABS), general corporate bonds increased significantly, resulting in an overall increase in issuance."

Specifically, the stock issuance scale in January was 4 cases totaling 47.7 billion KRW, a decrease of 673.4 billion KRW (93.4%) compared to the previous month. IPOs were 2 cases totaling 21 billion KRW, down 220.5 billion KRW from the previous month, and fundraising through paid-in capital increases was 2 cases totaling 26.7 billion KRW, down 452.9 billion KRW compared to the previous month.

The issuance scale of corporate bonds in January was 11.1579 trillion KRW, an increase of 2.4197 trillion KRW (27.7%) compared to the previous month. The impact of general corporate bonds was significant, with 35 cases totaling 3.211 trillion KRW, an increase of 2.717 trillion KRW (550%). Financial bonds amounted to 7.509 trillion KRW across 173 cases, increasing by 666.7 billion KRW (9.7%) compared to the previous month. Although financial holding company bonds and bank bonds decreased by 310 billion KRW and 245 billion KRW respectively, the issuance of other financial bonds such as those by credit card companies increased by more than 1.22 trillion KRW.

The issuance performance of commercial paper (CP) and short-term bonds totaled 121.5886 trillion KRW, a decrease of 11.0914 trillion KRW (8.4%) compared to the previous month. CP issuance was 27.5995 trillion KRW, down 3.7276 trillion KRW. Short-term bonds also decreased by 7.3638 trillion KRW (7.3%) to 93.9891 trillion KRW compared to the previous month.