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S. Korea's corporate financing posts double-digit growth in 2020

SEOUL
2021-01-27 11:51

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SEOUL, Jan. 27 (Xinhua) -- South Korea's corporate financing posted a double-digit growth last year as demand for loans mounted amid an economic fallout from the COVID-19 pandemic, financial watchdog data showed Wednesday.

The corporate financing through the sale of stocks and bonds totaled 194.48 trillion won (176.1 billion U.S. dollars) in 2020, up 10.8 percent from the previous year, according to the Financial Supervisory Service (FSS).

The equity financing, including the initial public offering (IPO) and the rights issuance, more than doubled to 10.91 trillion won (9.9 billion U.S. dollars) in 2020.

The IPO expanded in double figures, and the rights issuance more than doubled last year.

The debt financing gained 7.9 percent over the year to 183.57 trillion won (166.2 billion U.S. dollars) in 2020.

Bonds, sold by industrial companies, declined 7.2 percent to 42.06 trillion won (38.1 billion U.S. dollars), but financial institutions issued a total of 120.66 trillion won (109.2 billion U.S. dollars) in 2020, up 9.8 percent from a year earlier.

Demand increased for loans, especially from households and micro-business owners that were hit hard by economic downturn from the COVID-19 pandemic.

The issuance of asset-backed securities (ABS) advanced 39.3 percent in 2020 from the previous year.
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