SK Group Cuts Corporate Bond Issuance 50% in H1 as Semiconductor Firms Pivot to Equity Financing

According to Shinhan Investment Securities, SK Group's corporate bond issuance fell sharply to 2.747 trillion won in the first half of 2026, down over 50% from 7.457 trillion won a year earlier, as South Korean semiconductor firms increasingly favor equity financing for large-scale capital expenditure instead of debt markets.

Research analysts at Shinhan Investment Securities noted that Korean companies, unlike U.S. big tech firms, are likely to leverage capital based on free cash flow generation, limiting negative supply pressure in the credit market. The analysts expect this shift to foster a supportive credit environment, as improved growth from semiconductor exports and government mega-projects in semiconductors, physical AI, and data centers should strengthen manufacturing fundamentals and support credit spreads.