Corporate bond yields rise... 37.4% of large corporations' outstanding debt matures within one year

Corporate Bonds Maturing Within One Year Total 406.0934 Trillion Won

[Asia Economy Reporter Park Sun-mi] It has been revealed that the scale of bonds that 267 major domestic companies must repay within one year is approaching 407 trillion won. With corporate bond interest rates on the rise, difficulties in securing funds for companies are expected.

On the 15th, Leaders Index, a corporate analysis research institute, analyzed the first half reports of the top 500 domestic companies and found that the total amount of outstanding bonds not yet repaid by 267 companies reached 1,084.6076 trillion won. Among these, corporate bonds maturing within one year amounted to 406.0934 trillion won, accounting for 37.4% of the total outstanding balance.

By industry, banks (71.51%) and shipbuilding, machinery, and equipment (50.8%) had more than 50% of their total outstanding balance due within one year. By company, 10 companies including Daewoo Shipbuilding & Marine Engineering and Hyundai Elevator had 100% of their outstanding corporate bonds maturing within one year.

Excluding the financial sector, Hyundai Motor Company had the highest amount at 20.6621 trillion won. This is analyzed to be because credit finance corporate bonds such as Hyundai Card and Hyundai Capital are consolidated. Excluding large-scale credit finance and other financial bonds, Korea Electric Power Corporation had the largest amount of general corporate bonds maturing within one year at 7.8403 trillion won.

Next were SK Inc. (6.5708 trillion won), Samsung Life Insurance (3.9353 trillion won), POSCO Holdings (3.4480 trillion won), Hanwha (2.081 trillion won), KT (2.0508 trillion won), SK Telecom (1.7164 trillion won), SK Innovation (1.6700 trillion won), LG Chem (1.3850 trillion won), Lotte Shopping (1.2709 trillion won), Korean Air (1.0788 trillion won), Hotel Lotte (1.0677 trillion won), Hyundai Doosan Infracore (1.0501 trillion won), and 16 other general companies exceeding 1 trillion won.

Companies with a high proportion of outstanding bonds maturing within one year include Daewoo Shipbuilding & Marine Engineering, Hyundai Elevator, Kolon Global, Orion, Asiana Airlines, Youngone Corporation, Myungshin Industrial, Dongkuk Steel, Korea Shipping, and Shinsegae Construction, where 100% of their corporate bonds had a remaining maturity period of one year or less. Kumho Construction (97.3%), Dongbu Construction (93.7%), Samsung Heavy Industries (89.9%), Hyundai Doosan Infracore (84.8%), LIG Nex1 (81.5%), and MS Autotech (81.4%) had more than 80% of their corporate bonds maturing within one year.

Meanwhile, among the top 500 companies, 85 companies including Samsung SDS, Samsung Electro-Mechanics, LG Household & Health Care, Amorepacific, KT&G, and Celltrion had no record of bond issuance.