[Asia Economy Reporter Lee Seon-ae] In the first half of 2021, the total amount of funds raised through Short-Term Bonds (STB) reached 577.4 trillion KRW, an increase of 61.9 trillion KRW (12.0%) compared to the same period last year (515.5 trillion KRW), and an increase of 61.6 trillion KRW (11.9%) compared to the previous half-year (515.8 trillion KRW). Short-Term Bonds refer to corporate bonds issued under certain conditions, such as a maturity of one year or less and a minimum issuance amount of 100 million KRW. Issuance, distribution, and rights exercises are processed electronically through an electronic registration agency.

According to the Korea Securities Depository on the 16th, the issuance volume of general short-term bonds was 471.4 trillion KRW, an increase of 54.9 trillion KRW (13.2%) compared to the same period last year (416.5 trillion KRW). The issuance volume of securitized short-term bonds was 106 trillion KRW, up 7 trillion KRW (7.1%) from 99 trillion KRW in the same period last year.

Securitized short-term bonds refer to AB (Asset Backed) STBs and PFAB (Project Financing Asset Backed) STBs issued by Special Purpose Companies (SPC), in addition to general short-term bonds issued by general corporations, securities companies, and other financial companies.

By maturity, bonds issued within 3 months (572.9 trillion KRW) accounted for 99.2% of the total. By credit rating, issuance volumes were highest in the order of A1 (540 trillion KRW), A2 (29.1 trillion KRW), A3 (7.5 trillion KRW), and B or below (800 billion KRW).

By industry, issuance volumes were highest in the order of securities companies (327.1 trillion KRW), securitization companies (106 trillion KRW), card, capital, and other financial businesses (102.5 trillion KRW), and general and public enterprises (41.8 trillion KRW).