The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    14 injured as escalator reverses at Sunae Station in Bundang

  • 3

    Gov't to launch intensive crackdown against foreigners committing drug crimes

  • 5

    Dog meat traders condemn first lady, animal rights groups' push for ban

  • 7

    Netflix's new original 'Bloodhounds' to deliver cathartic action

  • 9

    INTERVIEWSpaceX's Starlink in Kyiv is wake-up call for Seoul

  • 11

    PHOTOSSubway escalator accident

  • 13

    Billy Graham Seoul Crusade celebrates 50th anniversary

  • 15

    Home gardening boom inspires plant adoption, specialized care services for leafy companions

  • 17

    Yoon's labor reform drive sputters as umbrella union exits talks

  • 19

    White Cube to open space in Seoul

  • 2

    RM to attend Seoul festival to mark BTS' 10th anniv.

  • 4

    Korea falls to Italy in FIFA U-20 World Cup semifinals

  • 6

    Ad or song?: Coca-Cola Zero ad featuring NewJeans becomes marketing blueprint

  • 8

    Robot to conduct orchestra for 1st time in Korea

  • 10

    Dollar remittance, foreign exchange rules to be eased

  • 12

    'Leaving Las Vegas' director Mike Figgis puts Korea in spotlight in new film

  • 14

    Rising minimum wage burdens small biz owners: survey

  • 16

    NATO chief to chair emergency Ukraine meeting over dam

  • 18

    Canada wildfires shroud New York in apocalyptic haze

  • 20

    Korean businesses seek tougher punishments for industrial espionage

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Sat, June 10, 2023 | 20:02
Markets
Corporate bond issuances by builders fall to 5-year low
Posted : 2022-12-28 16:41
Updated : 2022-12-28 19:59
Anna J. Park
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
gettyimagesbank
gettyimagesbank

Construction sector forecast to bear negative credit outlook for 2023

By Anna J. Park

Bonds issued by domestic construction companies fell to the lowest level in five years.

According to data compiled by financial information service provider, Yonhap Infomax, Wednesday, cumulative bond issuances by builders stood at only 541 billion won ($426 million) this year.

The figure shows a drastic shrinkage compared to the past few years. Back in 2018, a total of 1.7 trillion won worth of corporate bonds were issued by the construction sector. The amount increased to 2.3 trillion won in 2019, edged down to 2.2 trillion won in 2020, but rose again to 3.2 trillion won in 2021.

This amount of capital raised this year by the construction industry through corporate bond issuances stood only at one sixth of last year. The number of construction companies that issued corporate bonds this year also nosedived to five, from last year's 18. And most of the debt was issued during the first half of this year, before the country's corporate bond market experienced a credit crunch crisis.

Notably, Hyundai Engineering & Construction (E&C), which had been steadily raising necessary capital through the bond market, ceased issuing debt this year. The company issued 300 billion won worth of corporate bonds in 2018, another 300 billion won in 2019, 710 billion won in 2020, and 300 billion won last year. The builder reportedly ceased issuing bonds for now after being deterred by unfavorable debt market conditions.

Among major local construction companies, SK ecoplant showed the most active performance by issuing 150 billion won worth of corporate bonds this year, followed by Hanwha E&C at 130 billion won, DL Construction at 93 billion won, Hanshin E&C at 85 billion won, HL D&I Halla at 83 billion won.

Despite the dismal performances, Lotte E&C recently succeeded in finding buyers for all of the 250 billion worth of corporate bonds scheduled to be issued early next year. The annual interest rate for the bonds has been set at about 5.87 percent.

However, the company's success in selling the bonds has only been possible with state-run Korea Development Bank purchasing 90 billion worth of the debt, and another 120 billion won bought by the bond market stabilization fund, which was pooled by financial companies with the regulator's capital calls.

Other major construction companies are also expected to issue corporate bonds and the country's corporate debt market showing signs of stabilizing, but local credit rating agencies maintained an unfavorable outlook on the construction sector for the next year.

Korea Investors Service (KIS) included the construction sector as one of seven industries subject to a negative industry outlook as well as being on the negative credit watch in its 2023 industry outlook report. Korea Ratings also assesses that construction companies will experience an increasing financial burden due to growing risks posed by various real estate project financing deals and slumping sales.


Emailannajpark@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1Rising minimum wage burdens small biz owners: survey Rising minimum wage burdens small biz owners: survey
2IPO market regains vigor on bullish KOSPI IPO market regains vigor on bullish KOSPI
3OpenAI explores investment opportunities in Korean startups: Sam Altman OpenAI explores investment opportunities in Korean startups: Sam Altman
4China reaches out to Korean Assembly to counterweigh Yoon's bet on US China reaches out to Korean Assembly to counterweigh Yoon's bet on US
5S. Korea may see rise in NK defectors as Pyongyang mulls reopening borders S. Korea may see rise in NK defectors as Pyongyang mulls reopening borders
6Resurging household loans pose challenge for BOK's rate policy Resurging household loans pose challenge for BOK's rate policy
7SPC bolsters PR activities in US SPC bolsters PR activities in US
8Hyundai Motor partners with Spider-Man animation to envision future mobility Hyundai Motor partners with Spider-Man animation to envision future mobility
9Japanese business leaders pledge to support Busan's Expo bid Japanese business leaders pledge to support Busan's Expo bid
10More foreign language tours will be offered for Cheong Wa Dae More foreign language tours will be offered for Cheong Wa Dae
Top 5 Entertainment News
1China's hallyu restrictions likely to continue unless Seoul-Beijing ties improve China's hallyu restrictions likely to continue unless Seoul-Beijing ties improve
2Gang Dong-won, Park Jeong-min team up for Joseon-era thriller 'War and Revolt' Gang Dong-won, Park Jeong-min team up for Joseon-era thriller 'War and Revolt'
3[INTERVIEW] CIX talks about team chemistry, youth theme INTERVIEWCIX talks about team chemistry, youth theme
4Netflix's new original 'Bloodhounds' to deliver cathartic actionNetflix's new original 'Bloodhounds' to deliver cathartic action
5'Leaving Las Vegas' director Mike Figgis puts Korea in spotlight in new film 'Leaving Las Vegas' director Mike Figgis puts Korea in spotlight in new film
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group