Key facts
- Corporate direct financing in South Korea decreased by 10.9% in May.
- Total funds raised in May amounted to 20.14 trillion won.
- The decline was primarily due to a 15.4% drop in corporate bond sales.
- Stock sales saw an increase of 946 billion won in May.
- The outstanding value of corporate bonds grew by 0.6% in May.
Corporate direct financing in South Korea experienced a significant downturn in May, falling 10.9% from the previous month. Local companies collectively raised 20.14 trillion won (US$13.1 billion) through stock and bond sales, a decrease of 2.48 trillion won compared to April.
The decline was primarily attributed to a sharp reduction in corporate bond sales, which dropped by 15.4%, or 3.42 trillion won, to 18.73 trillion won in May. This contrasts with a rise in stock sales, which increased by 946 billion won to 1.36 trillion won during the same period.
Despite the monthly dip in new financing, the overall value of outstanding corporate bonds saw a modest increase of 0.6%, amounting to 4.12 trillion won, reaching a total of 749.39 trillion won by the end of May.