Domestic Companies Flourish in February with 28 Trillion Won in Direct Financing

The so-called "New Year effect" continued to benefit domestic companies in February, as they successfully raised over 28 trillion won (approximately $19.11 billion) through direct financing methods, including stock and corporate bond issuances.

Stock Issuance: A Focus on Small and Mid-sized IPOs

Stock issuance saw a significant shift towards small and mid-sized initial public offerings (IPOs) and rights offerings, resulting in a 40.1% decrease compared to the previous month. February witnessed nine IPOs, accumulating 205.4 billion won, with rights offerings contributing an additional 237.8 billion won.

Corporate Bonds and Financial Bonds on the Rise

With 104 general corporate bonds issued, totaling 10.77 trillion won, and financial bonds reaching 15.8679 trillion won, the market displayed robust activity. Asset-backed securities (ABS) also saw a 13% increase, underscoring a vibrant financial landscape.

Commercial Paper and Short-term Bond Issuance

Despite a 7.1% decline in commercial paper (CP) and short-term bond issuance, totaling 118.14 trillion won, the financial markets demonstrated resilience and adaptability in February.