Direct Financing by Companies in July Amounts to 26.3 Trillion Won... Down 1.9% from Previous Month

Last month, the amount of funds raised by domestic companies through the direct financing market decreased slightly compared to the previous month. Although stock issuance increased significantly thanks to a rise in paid-in capital increases, a decrease in corporate bond and short-term financial product issuances offset this growth.

According to the Financial Supervisory Service's release of the “Direct Financing Procurement Performance of Companies in July 2026” on August 26, the total amount of public offerings of stocks and corporate bonds last month was 26.342 trillion won, down 4.999 billion won (1.9%) from the previous month (26.8419 trillion won).

Stock issuance amounted to 1.4924 trillion won, a sharp increase of 1.1769 trillion won (373.0%) from the previous month. However, initial public offerings (IPOs) decreased to 61.6 billion won, down 103.4 billion won (62.7%) from the previous month. In terms of the number of cases, IPOs also dropped from six in the previous month to two, both of which were listings on the KOSDAQ market.

Paid-in capital increases totaled five cases, amounting to 1.4308 trillion won, representing an increase by one in the number of cases and by 1.2803 trillion won (850.7%) in the amount, compared to the previous month. This figure includes Hanwha Solutions' paid-in capital increase of 1.1713 trillion won.

Corporate bond issuance resulted in 315 cases totaling 24.8496 trillion won, which is 1.6768 trillion won (6.3%) less than the previous month's 434 cases and 26.8419 trillion won. Financial bonds and asset-backed securities (ABS) were recorded at 21.8571 trillion won and 215.5 billion won, decreasing by 171 billion won (0.8%) and 1.7428 trillion won (89.0%) respectively. Meanwhile, ordinary corporate bonds increased to 2.777 trillion won, up 237 billion won (9.3%).

As of the end of July, the outstanding balance of corporate bonds stood at 766.954 trillion won, an increase of 9.715 trillion won (1.3%) from the previous month's 757.239 trillion won. For ordinary corporate bonds, net repayments continued through July with 950 billion won in net repayments following the previous month.

The issuance of commercial papers (CP) and short-term bonds totaled 175.1742 trillion won, a drop of 96.9071 trillion won (35.6%) compared to the previous month. CP issuance actually increased by 12.9% to 55.3993 trillion won, but short-term bond issuance plunged by 46.3% to 119.7749 trillion won.

This content was produced with the assistance of AI translation services.