Seoul: Corporate direct financing in South Korea soared nearly 29 percent in January from a month earlier, data showed Tuesday. Local companies raised a combined 24 trillion won (US$16.7 billion) last month by selling stocks and bonds, marking a significant increase of 5.33 trillion won, or 28.5 percent, from the previous month.
According to Yonhap News Agency, stock sales rose to 739 billion won in January from the previous month's 486 billion won. Share sales via initial public offerings more than tripled to 729 billion won over the same period, contributing to the overall increase in financing.
Corporate bond sales also saw a notable rise, increasing 27.9 percent on-month to 23.29 trillion won last month. The value of outstanding corporate bonds stood at 697.23 trillion won as of end-January, reflecting a rise of 4.5 trillion won from a year earlier.
These figures underscore a robust appetite for corporate direct financing in South Korea, driven by both stock and bond markets, with companies leveraging favorable conditions to bolster their financial positions.