Corporate financing in South Korea climbs on debt surge

Corporate direct financing in South Korea surged sharply in April as companies ramped up debt sales amid mounting uncertainties from US tariff tensions, data from the Financial Supervisory Service showed. Local firms raised KRW30.8tr (USD21.19bn) by issuing stocks and bonds, marking a 41.2% increase, or KRW8.86tr more, compared to March. While stock sales declined 20.4% month-on-month to KRW373bn, and IPO proceeds dropped to KRW90.9bn from KRW169bn, corporate bond sales soared 42.5% to KRW30.43tr. The outstanding value of corporate bonds reached KRW713.69tr at April-end, up KRW9.02tr from March. The data highlights companies’ preference for debt financing amid global trade uncertainties and tariff risks.