Since July, short-term bond issuance plunged by 100 trillion won. It is the first time in six months that short-term bond issuance has turned to a decline.
On the 26th, the Financial Supervisory Service announced the "Direct financing by corporations in July 2026."
Short-term bond issuance by corporations totaled 119.7749 trillion won, down 103.2396 trillion won (46.3%) from the previous month. The sharp 53.8% plunge in general short-term bonds issued by financial companies had a major impact.
Outstanding short-term bonds stood at 99.1520 trillion won at the end of July, down 12.0780 trillion won (10.9%) from the end of the previous month.
Corporate bond issuance also fell 1.6768 trillion won (6.3%) from the previous month to 24.8496 trillion won. General corporate bonds rose 9.3%, but asset-backed securities (ABS) dropped 89%, which had a large impact. Financial bonds decreased 0.8%.
As of the end of July, outstanding corporate bonds increased 9.7150 trillion won (1.3%) to 766.9540 trillion won. Following the previous month, there was also a net redemption of 950 billion won in July.
Equity issuance rose 1.1769 trillion won (373%) to 1.4924 trillion won. Initial public offerings fell 62.7%, but the amount of rights offerings increased 850.7% due to large rights offerings by companies including Hanwha Solutions.
Commercial paper (CP) issuance totaled 55.3993 trillion won, up 6.3325 trillion won (12.9%) from the previous month. General CP issued by financial firms and others increased 7.8%. As of the end of July, outstanding CP was 249.6574 trillion won, up 8.1691 trillion won (3.4%) from the previous month.