Last month, the capital raised by domestic corporations through direct finance significantly decreased. Capital procurement through stock increased nearly fivefold due to the large-scale capital increase by Samsung SDI, however, corporate bonds saw a substantial decline due to a base effect from the surge in issuance in April.
The Financial Supervisory Service noted on the 30th that the funds raised by corporations through the issuance of stocks or corporate bonds totaled 21.3 trillion won, a decrease of 9.5 trillion won (approximately 30.8%) from the previous month.
Direct finance refers to the method by which a company raises funds by directly issuing stocks or bonds without going through financial institutions.
Last month, the scale of funds raised through stocks was 1.8 trillion won, an increase of 1.4 trillion won (386.5%) compared to the previous month. Initial public offerings increased by 485 billion won (53.4%), and capital increases rose by 1.4 trillion won (493.6%). The large-scale capital increase of 1.7 trillion won by Samsung SDI for facility funds and acquisition purposes contributed to the steep upward trend.
General corporate bonds totaling 2.15 trillion won were issued last month, a decrease of 6.7 trillion won (75.8%) compared to the previous month.
The issuance scale of corporate bonds for operational funds decreased from 1.1 trillion won to 120 billion won in one month, and the issuance of corporate bonds for refinancing decreased from 7.7 trillion won to 1.9 trillion won.
The FSS explained that in terms of issuance ratios, the share for refinancing purposes dropped from 86.9% to 89.8%, while the share for operational purposes fell from 12.6% to 5.6%.
Financial bonds worth 15.1 trillion won were issued, marking a decrease of 4.8 trillion won (24.2%) during this period. The total balance of corporate bonds has increased for 11 consecutive months since June of last year, reaching 714.4 trillion won as of last month.
Commercial papers and short-term bonds were issued last month at 130.9 trillion won, a decrease of 8.7 trillion won (6.2%) compared to the previous month. During this period, CPs decreased by 2.2 trillion won, and short-term bonds decreased by 6.5 trillion won.