South Korea Sees Increase in Corporate Bond Sales
(MENAFN) South Korea experienced a notable increase in corporate bond sales during the first half of the year, driven by heightened funding needs across both industrial and financial sectors, according to data released Monday by the Financial Supervisory Service.
The total volume of corporate bonds issued climbed 9.3 percent year-on-year, reaching 145.70 trillion won (approximately 105.4 billion U.S. dollars) between January and June.
Industrial firms contributed 37.83 trillion won in bond sales during this period, marking a 12.9 percent growth compared to the same timeframe last year.
Meanwhile, bonds issued by financial institutions rose by 5.4 percent to 97.39 trillion won. Asset-backed securities also saw a sharp increase, soaring 43.4 percent to 10.48 trillion won.
This surge in bond issuance followed a series of interest rate cuts by the Bank of Korea, which trimmed its benchmark rate by 25 basis points in both February and May, bringing the rate down to 2.50 percent. These moves came after similar reductions of 25 basis points each in October and November of the previous year.
In contrast, equity financing activities, including initial public offerings (IPO) and rights issuances, fell 16.6 percent year-on-year, totaling 4.23 trillion won in the first half. (1 won equals 0.00072 U.S. dollars)
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