SEOUL, Jan. 11 (Korea Bizwire) — The total amount of debt sold in South Korea rose last year on the back of a surge in corporate bonds and bank debentures, data showed Friday.
The combined bonds issued in 2018 totaled 630.3 trillion won (US$564.53 billion), up 2.8 percent from the previous year, according to the data by the Korea Financial Investment Association (KOFIA).
The increase was led by a surge in the sales of corporate bonds, which spiked 24.4 percent on-year to 79.6 trillion won. Bank debentures floated last year surged 11.2 percent to 191 trillion won, the data showed.
But the amount of state bonds issued last year fell 6.7 percent on-year to 114.9 trillion won, and the so-called monetary stabilization bonds decreased 2.32 percent to 159.9 trillion won.
“Growing corporate demand for funds ahead of an interest rate hike and soaring household debt, among others, appear to have caused the surge in bond issuance in 2018,” the KOFIA said in a release.