Seoul: Corporate direct financing in South Korea soared nearly 17 percent last year from a year earlier on a rise in debt sales, data showed Wednesday. Local companies raised a combined 287.01 trillion won (US$196 billion) last year by selling stocks and bonds, up 41.39 trillion won, or 17.7 percent, from 245 trillion won the previous year.

According to Yonhap News Agency, stock sales declined to 8.82 trillion won last year from the previous year's 10.86 trillion won, with share sales via initial public offerings totaling 4.12 trillion won, up 14.4 percent on-year. Despite the decrease in overall stock sales, the IPO market reflected a growth trend, indicating investor interest in newly listed companies.

Corporate bond sales increased 18.5 percent on-year to 278.24 trillion won in 2024, highlighting a significant shift towards debt as a preferred financing method among South Korean firms. The value of outstanding corporate bonds stood at 692.72 trillion won as of end-December, up 51.39 trillion won from a year earlier. This rise underscores the expanding reliance on bond markets for capital amid fluctuating stock performances.