Last Year, Corporate Direct Financing Amount Increased

Last year, the amount raised by domestic companies through direct financing such as stocks, corporate bonds, commercial papers (CP), and short-term bonds all increased compared to the previous year.

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According to the '2024 Corporate Direct Financing Performance' announced by the Financial Supervisory Service on the 5th, the public issuance amount of stocks and corporate bonds last year was 287.0638 trillion KRW, an increase of 16.9% (41.3956 trillion KRW) compared to the previous year.

The public issuance scale of stocks last year was 8.8205 trillion KRW, a decrease of 2.0364 trillion KRW (18.8%) compared to the previous year (10.8569 trillion KRW).

Among these, the amount issued through Initial Public Offerings (IPO) was 4.1171 trillion KRW, an increase of 14.4% (517.4 billion KRW) compared to the previous year (3.5997 trillion KRW). The total number of cases was 116, down from 119 the previous year. However, the number of IPOs over 100 billion KRW increased from 3 to 4, and the average public offering amount per case rose from 30.2 billion KRW to 35.5 billion KRW.

However, fundraising through paid-in capital increases was 4.7034 trillion KRW, a decrease of 35.2% (2.5538 trillion KRW) compared to the previous year (7.2572 trillion KRW).

By market, the Korea Exchange (KRX) had 8 cases raising 2.0617 trillion KRW, KOSDAQ had 42 cases raising 2.2616 trillion KRW, and unlisted companies issued 380.1 billion KRW in 6 cases. The Financial Supervisory Service explained that this was due to a decrease in paid-in capital increases by large companies for purposes such as facility investment.

The issuance amount of corporate bonds was 278.2433 trillion KRW, an increase of 18.5% compared to the previous year (234.8113 trillion KRW). The number of issuances also increased from 4,288 to 4,554. This was due to an increase in general corporate bonds and financial bonds issued for refinancing purposes amid interest rate cuts.

As of the end of last year, the outstanding balance of corporate bonds was 692.7242 trillion KRW, an increase of 8.0% (51.398 trillion KRW) compared to the end of the previous year (641.3262 trillion KRW). In particular, general corporate bonds maintained a net issuance trend, with 3.0339 trillion KRW issued in 2023 and 2.4861 trillion KRW issued last year.

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The issuance amount of CP and short-term bonds was 1,303.525 trillion KRW, an increase of 3.1% (39.5401 trillion KRW) compared to the previous year.

Last year, CP issuance amounted to 435.1951 trillion KRW, an increase of 6.5% (26.7095 trillion KRW) compared to the previous year (408.4856 trillion KRW). The outstanding balance of CP at the end of last year was 203.043 trillion KRW, an increase of 2.4% (4.6938 trillion KRW) compared to the end of the previous year (198.3492 trillion KRW).

The issuance amount of short-term bonds was 868.3299 trillion KRW, an increase of 1.5% (12.8306 trillion KRW) compared to the previous year (855.4993 trillion KRW). The outstanding balance at the end of last year was 64.8813 trillion KRW, a decrease of 2.3% (1.5076 trillion KRW) compared to the end of the previous year (66.3889 trillion KRW).

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