Total public offerings of stocks and corporate bonds reached 19.25 trillion won ($14.2 billion), up 1.5 trillion won from January, according to the Financial Supervisory Service.
Equity financing led the increase, surging 215.6 percent on-month to 341.5 billion won, driven by a rebound in initial public offerings and rights issues. IPOs totaled three deals, with proceeds jumping 265.8 percent to 290.8 billion won, while rights offerings rose 76.7 percent to 50.7 billion won.
Debt issuance remained robust, rising 7.2 percent to 18.9 trillion won. The increase was led by financial bonds, which jumped 37.6 percent, signaling a flurry of preemptive borrowing as issuers moved to lock in funding before yields climb further.
By contrast, general corporate bonds and asset-backed securities declined 28.7 percent and 42.6 percent, respectively, pointing to a more selective risk appetite.
Issuance was heavily skewed toward high-grade borrowers. Investment-grade bonds accounted for 65.6 percent of total issuance, while lower-rated bonds below BBB made up just 3.6 percent, underscoring a clear market bias toward safer credits.
Refinancing dominated funding activity. About 76 percent of bond issuance was used to roll over existing debt, reflecting expectations that borrowing conditions will tighten further.
Short-term funding markets showed mixed trends. Combined issuance of commercial paper and short-term bonds rose 3.1 percent to 159.6 trillion won.
Commercial paper issuance fell 19.3 percent to 37.9 trillion won, while short-term bonds rose 12.9 percent to 121.7 trillion won, suggesting a shift toward more structured and flexible instruments.
Outstanding corporate bonds stood at 748.4 trillion won at end-February, down 0.6 percent from the previous month, as net redemptions extended for a second straight month.
The cautious funding stance is likely to harden further, with the Middle East conflict in March jolting markets and pushing yields back toward levels seen during the post-pandemic tightening cycle.
Copyright ⓒ Aju Press All rights reserved.