This article appeared on Signal, the capital markets compass, at 5:22 p.m. on August 31, 2026.
The securities district in Yeouido, Seoul. Yonhap News
Corporate funding strategies at home and abroad have entered a period of upheaval as interest rates climb sharply worldwide. With borrowing costs in global bond markets rising fast, foreign companies with no prior ties to South Korea’s debt market are flocking here one after another, while large Korean groups that long dominated overseas issuance are turning to bank loans instead.
Doosan Enerbility (034020) has halted a plan to raise $300 million in the global bond market in the second half of this year, according to investment banking sources on the 31st. The company had secured a guarantee from a financial institution and lined up an underwriting syndicate, but decided not to issue the notes. About 450 billion won worth of foreign-currency bonds that Doosan Enerbility issued three years ago matured on July 17, and the company covered the repayment with bank loans rather than refinancing in the bond market.
Foreign companies that once commanded global bond markets are now knocking on the door of Korea’s domestic issuance market. APP Group, the Indonesia-based global paper manufacturer, raised $85 million in Korea in March, and Vietnam’s Vingroup is pursuing a won-denominated bond issue, an unusual step for a manufacturer in that market. Big Tech firms including Meta, which urgently need funding for data center construction, have also asked Korean and foreign securities firms whether won-denominated issuance is possible, sources said.
Higher global rates are cited as the common backdrop for the shift in funding strategies. As the U.S. Federal Reserve’s hawkish policy stance has become more pronounced, companies raising dollars directly overseas cannot ignore the swelling cost burden. For global corporations under pressure for cash in particular, stepping into emerging-market bond markets can be a rational way to spread that cost.
Large Korean companies are still tapping global bond markets, but analysts say the possibility of interest costs snowballing cannot be ruled out. Lotte Rental and Hanwha Q CELLS America Holdings, the U.S. arm of Hanwha Solutions’ Q CELLS division, are currently pursuing dollar funding.
“Companies are pushing ahead with foreign-currency issuance because they prioritize business funding needs over cost, but even large corporations have to accept rates in the 5% range without a financial guarantee, so a cautious approach is needed,” an investment banking official said.