Rising Korean government bond yields have lifted borrowing costs in the
corporate debt market, prompting firms to shift into short-term funding, data
show. The Korea Financial Supervisory Service and Korea Securities Depository
report that as of April corporates issued 741.4 tln won (about $488.4bn) in
short-term notes and commercial paper, up 47.1% YoY, while corporate bond
issuance fell 34.1% YoY. "Commercial paper's short-term funding costs have
remained low, which has driven a large increase in CP issuance," said Eunji Kim,
credit analyst at Samsung Securities.
