South Korean corporate direct financing surges 75%

South Korean corporate direct financing rose significantly in September, with total issuances of stocks and corporate bonds reaching 28.56 trillion won, a 74.9% increase from the previous month. This growth was primarily driven by a 77.5% surge in corporate bond issuances, particularly in the financial sector where bank bonds and other financial bonds saw substantial increases.

While stock issuances decreased by 15.3% due to a decline in paid-in capital increases despite a rise in IPOs, the expansion in debt markets was notable. Commercial paper and short-term bond issuances also grew by 23.0%. However, general corporate bond issuances saw a net redemption of over 3.19 trillion won, suggesting that much of the increased activity was directed toward managing existing maturities rather than acquiring new capital.