South Korean companies’ foreign bond issues on the rise
Unit: billion dollars
Source: Korea Center for International Finance
SK Hynix’s fresh bond issue bodes well for other Korean companies preparing to tap the global bond market for new capital, including SK On Co., POSCO Holdings Inc. and Hanwha TotalEnergies Petrochemical Co.
The chipmaker is among the biggest South Korean issuers in the global bond market. In January last year, it raised $2.5 billion in foreign bonds with maturities of three, five and 10 years.
Industry observers see foreign bond issuance by South Korean companies picking up this year.
In 2023, domestic companies sold $53 billion worth of new foreign currency bonds, including $2.5 billion issued by the Export-Import Bank of Korea, according to the Korea Center for International Finance.
Of the total, non-state-controlled enterprises accounted for $9.2 billion, up 96% on-year.
“Korean bond issues are expected to attract investor interest amid the real estate crisis in China and geopolitical issues in the Middle East,” said Kim Joon-soo, an analyst at NH Investment & Securities. “Their foreign bond issues will likely gain traction.”
Write to Hyun-Ju Jang at
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Yeonhee Kim edited this article.