May Stock Issuance Amount Down 70% Month-on-Month... IPO Slump

Corporate Bond Issuance Decreases by 12.4% Compared to Previous Month

Last month, the scale of stock issuance decreased by 70% compared to the previous month due to a decline in initial public offerings (IPOs).

According to the Financial Supervisory Service's "Direct Financing Performance of Companies in May" on the 19th, the amount of stock issuance last month was 209.6 billion KRW, down 493.8 billion KRW (70.2%) from the previous month (703.4 billion KRW).

The Financial Supervisory Service explained that the significant decrease was largely due to IPOs amounting to only 79.5 billion KRW last month, a sharp drop of 478.5 billion KRW (85.8%) compared to the previous month.

Paid-in capital increase last month also decreased by 15.3 billion KRW (10.5%) to 130.1 billion KRW compared to the previous month.

During the same period, the scale of corporate bond issuance also decreased by 2.9711 trillion KRW (12.4%) from 23.9398 trillion KRW to 20.9687 trillion KRW. While issuance for bond refinancing purposes declined, issuance for facility funding increased.

By type, general corporate bonds last month amounted to 2.145 trillion KRW, down 2.182 trillion KRW (50.4%) from the previous month, marking the lowest issuance so far this year.

Financial bonds were issued at 17.8312 trillion KRW, a decrease of 370.7 billion KRW (2.0%) compared to the previous month. Asset-backed securities (ABS) amounted to 992.5 billion KRW, down 418.4 billion KRW (29.7%) from the previous month. Additionally, commercial paper (CP) and short-term bond issuance totaled 97.5508 trillion KRW, a decrease of 8.1074 trillion KRW (7.7%) compared to the previous month.