Massive boosts to direct financing in South Korea

Data from South Korea's Financial Supervisory Service shows that a massive initial public offering (IPO) has nearly tripled corporate direct financing in South Korea in January from the previous month. According to the data, local companies raised a combined KRW27.53tr (USD23.1bn) by selling stocks and bonds in January, up 172.5% from December. Stock sales stood at KRW10.55tr last month, up 615% from the prior month, driven mostly by the large-scale IPO of LG Energy Solution Ltd., South Korea's top car battery maker. Bond sales also spiked 96.8% on-month to KRW16.98tr in January as more firms sought to refinance their existing debt. Local companies issued commercial paper and short-term bonds worth KRW141.88tr last month, up 19% from the previous month.