Last Year Corporate Direct Financing Amount 175.5 Trillion KRW...3.3% Increase from Previous Year

[Asia Economy Reporter Ji-hwan Park] Last year, the amount of funds directly raised by companies through public offerings of stocks and corporate bonds reached 175.5 trillion won.

According to the '2019 Corporate Direct Financing Performance' released by the Financial Supervisory Service on the 28th, the total issuance through public offerings last year was 175.4999 trillion won, an increase of 3.3% compared to the previous year.

Fundraising through stocks decreased significantly to 5.3172 trillion won in one year. In particular, paid-in capital increase dropped sharply by 56.7% from 6.581 trillion won the previous year to 2.8495 trillion won.

A Financial Supervisory Service official explained, "Although the number of initial public offerings increased mainly due to SPACs, the performance of paid-in capital increase decreased significantly, resulting in a 40.2% decrease compared to the previous year."

On the other hand, corporate bonds increased by 5.8% to 170.1827 trillion won. General corporate bonds were issued at 45.3062 trillion won (461 cases), an increase of 27.1% compared to the previous year. During the same period, financial bonds increased by 0.7% to 109.9029 trillion won.

At the end of 2019, the outstanding balance of corporate bonds was 523.9396 trillion won, an increase of 38.6665 trillion won compared to the end of the previous year. Last year's issuance performance of CP (commercial paper) and short-term bonds was 1512.0065 trillion won, an increase of 40.791 trillion won compared to the previous year (1471.2155 trillion won).

CP increased by 35.1444 trillion won to 388.8438 trillion won, and short-term bonds increased by 5.6466 trillion won to 1123.1627 trillion won. As of the end of last year, the outstanding balance of short-term bonds was 54.6104 trillion won.

This content was produced with the assistance of AI translation services.