Last month, the capital raised by domestic corporations through direct financing significantly increased. Capital raising through stock issuance reflected large-scale capital increases by Hanwha Aerospace and POSCO FUTURE M, increasing by more than 10 times, while corporate bonds saw a slight decrease.
The Financial Supervisory Service noted that in July, the funds raised by corporations through stock or corporate bond issuance amounted to 28.22484 trillion won, an increase of 4.2943 trillion won (about 17.9%) compared to the previous month.
Direct financing refers to a method where a company raises funds by directly issuing stocks or bonds without going through financial institutions.
Last month, the scale of funding through stock issuance was 4.8135 trillion won, an increase of 4.4212 trillion won (1127%) compared to the previous month. Initial public offerings (IPOs) increased by 414.2 billion won (444.2%) compared to the previous month, while capital increases rose by 3.9070 trillion won (1412.9%). The large-scale IPO of Daehan Shipbuilding contributed to an increase in the issuance amount, while the capital increases reflected large-scale capital increases by Hanwha Aerospace (2.9198 trillion won) and POSCO FUTURE M (1.1070 trillion won), showing a sharp upward trend.
General corporate bonds saw 23.4349 trillion won issued last month, a decrease of 126.9 billion won (0.5%) compared to the previous month.
The issuance scale of corporate bonds for operating funds decreased from 1.147 trillion won to 209 billion won over the month, while refinancing-related corporate bond issuance fell from 1.959 trillion won to 2.769 trillion won. For facility purposes, 320 billion won was issued in June, but there were no issuances in July.
The FSS explained, "In terms of issuance ratio, refinancing purposes increased from 57.2% to 93%, while operating purposes decreased from 33.5% to 7%."
Financial bonds totaled 19.3619 trillion won in issuance, an increase of 1.9937 trillion won (11.5%) during this period. The total corporate bond balance has increased for 13 consecutive months since last June, reaching 725.5888 trillion won last month.
Commercial paper (CP) and short-term bonds saw 138.8654 trillion won issued last month, an increase of 15.9945 trillion won (13%) compared to the previous month. During this period, CP rose by 7.3997 trillion won and short-term bonds increased by 8.5948 trillion won.