Corporate Bond Issuance Reaches Record High in First Half of 2023, Mostly Used for Debt Repayment

The Financial Supervisory Service has reported a record-breaking volume of corporate bond issuance in the first half of this year, reaching 133.25 trillion won (approximately $96.25 billion). This represents a 9.4 percent increase compared to the same period last year, highlighting the growing trend of companies turning to the bond market for financing.

However, the report also revealed that a majority of the funds raised through corporate bond issuance were used for refinancing existing debts rather than for facility investments. This indicates that companies are prioritizing debt management and financial stability in the current economic climate.

In addition to the surge in corporate bond issuance, the report also noted a significant increase in stock issuance during the first half of the year. This was driven by large initial public offerings (IPOs), with companies like HD Hyundai Marine Solution raising substantial amounts through their IPOs.

Overall, the report paints a picture of a dynamic corporate financing landscape, with companies leveraging both the bond and stock markets to raise capital for various purposes. The increase in corporate bond and stock issuance reflects the resilience and adaptability of businesses in navigating the challenges of the current economic environment.