Last month, domestic corporations were reported to have raised 140.6467 trillion won through direct financing. This figure is a decrease of 5.5005 trillion won (about 4%) compared to the previous month.
The Financial Supervisory Service noted on the 23rd that funds raised by corporations through the issuance of stocks or corporate bonds amounted to 21.8168 trillion won, a decrease of 6.1898 trillion won (22.1%) compared to the previous month.
Direct financing refers to the method by which a company directly raises funds by issuing stocks or bonds. Stocks are primarily raised through initial public offerings (IPOs) or paid-in capital increases, while bonds include corporate bonds, short-term bonds, and commercial paper (CP).
Last month, the scale of funding through stocks was 4.690 billion won, which is an increase of 4.432 billion won (5.8%) compared to the previous month.
The increase in stock issuance was led by paid-in capital increases. Last month, the number of paid-in capital increases was 6, with a funding scale of 300.2 billion won, an increase of 62.4 billion won (26.3%) compared to the previous month. This is the result of large-scale paid-in capital increases for facility funds and operational funds, with Hyundai Motor Securities contributing 162 billion won and GI Innovation 111.2 billion won.
In contrast, funding through initial public offerings decreased to 168.9 billion won, a drop of 36.6 billion won (17.8%) compared to the previous month. The decrease is attributed to a decline in the number of initial public offerings, primarily among small and medium-sized corporations.
General corporate bonds amounted to 42.020 billion won issued last month, which is a decrease of 65.68 billion won (61%) compared to the previous month.
The FSS explained that 'the proportion of issuances for operational funds decreased due to a base effect caused by a surge in operational funds in February.'
The issuance scale of corporate bonds for operational funds dramatically decreased from 28.238 billion won to 3.450 billion won in one month. The issuance of corporate bonds for refinancing also decreased from 77.342 billion won to 38.570 billion won.
Financial bonds amounted to 152.259 billion won issued, showing a decrease of 64.2 billion won (4%) during the period. The total corporate bond balance has increased for nine consecutive months since June of last year, reaching 704.680 billion won last month.
CP and short-term bonds amounted to 118.8299 trillion won issued last month, an increase of 6.893 billion won (0.6%) compared to the previous month. During this period, CP increased by 65.133 billion won and short-term bonds by 72.025 billion won.