Asia

Direct corporate lending to decline in 2022 due to weak equity and bond markets

SEOUL, Jan. 25 (Yonhap) – South Korea’s direct corporate lending contracted in 2022 as inflation concerns and rising borrowing costs weighed on stock and bond markets, data showed Wednesday.

Local businesses raised a total of 204.57 trillion won (US$165.9 billion) by selling stocks and bonds last year, down 11.6% from a year earlier, according to Financial Supervisory Service data.

Direct financing refers to raising funds directly from the stock or bond market without borrowing from a bank or other financial institution.

The decline is attributed to lower inflation due to monetary tightening in major countries and sluggish stock and bond markets affected by growing concerns about an economic slowdown.

Last year, the company raised 21.94 trillion won through stock sales, down 24.6% from the previous year. The amount of corporate bond sales in 2022 was 182.63 trillion won, down 9.8% from the previous year.

kokoobj@yna.co.kr
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https://en.yna.co.kr/view/AEN20230125003400320?input=rss&section=news Direct corporate lending to decline in 2022 due to weak equity and bond markets

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