In the previous month, capital raised by domestic corporations through direct financing decreased by about 2 trillion won from the prior month. Although stock issuance, including initial public offerings (IPOs) and paid-in capital increases, grew, corporate bond issuance fell sharply.
The Financial Supervisory Service said on Dec. 23 that funds raised by corporations through stock or corporate bond issuance in Nov. were 21.8915 trillion won, down 1.8135 trillion won (7.6%) from the previous month.
Direct financing refers to a method by which a company raises funds by issuing stocks or bonds directly without going through a financial company.
Funds raised through stocks last month totaled 821.4 billion won, a sharp increase of 727.5 billion won (774.8%) from the prior month. In the KOSDAQ market, 14 IPOs raised 410.9 billion won, up 358.5 billion won (684%) from the prior month. In paid-in capital increases, seven cases raised 410.6 billion won for operating and facility funds. In particular, ROBOTIS issued 209.9 billion won, driving a large increase.
Corporate bonds totaled 21.0701 trillion won, down 2.541 trillion won (10.8%) from the prior month. Ordinary corporate bonds were issued in 30 cases totaling 1.956 trillion won, a 45% decrease during the period. By funding purpose, issuance for operating and facility purposes rose to 22.1% from 16.6% and to 22.2% from 10.7%, respectively. In contrast, the share of corporate bonds issued for refinancing fell to 55.7% from 72.7%.
Financial bonds were issued totaling 17.3372 trillion won, down 893.7 billion won (4.9%) from the prior month. Total outstanding corporate bonds stood at 756.2263 trillion won, up 6.1816 trillion won (0.8%) from the prior month. They have been steadily increasing since the previous month.
Commercial paper (CP) and short-term bonds increased from the prior month. CP outstanding was 44.8023 trillion won, up 116.2 billion won (0.3%) from the prior month, and short-term bond issuance was 121.4896 trillion won, up 28.5298 trillion won (30.7%) from the prior month.