Corporate bond issuance in South Korea drops 34%, while commercial paper surges 47%, sparking a short-term financing wave in Seoul
- As rising South Korean government bond yields increase borrowing costs in the corporate debt market, South Korean companies are increasingly turning to short-term financing.
- As of April this year, South Korean companies had issued a total of 741.4 trillion won in short-term bonds and commercial papers, an increase of 47.1% compared to the same period last year.
- During the same period, the issuance of local corporate bonds dropped by 34.1% year-on-year, indicating a significant contraction in long-term financing channels.
- According to a report by credit analysts at Samsung Securities, the cost of short-term financing through commercial papers has remained low, which has led to a sharp increase in the issuance of commercial papers by companies.
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