[E-Daily Marketin KIM YEON-SEO Reporter] With high interest rates causing even the BBB-rated corporate bond market to contract, the corporate bond issuance market has come to a standstill. Issuers are postponing bond issuances due to the burden of higher funding costs, and investors are becoming cautious about investing in lower-rated corporate bonds, as they can secure sufficient yields from government bonds alone. Consequently, the corporate bond market is expected to see continued issuance focused on high-quality bonds from companies with solid earnings for the time being.

‘AA+’ SamsungSecurities to Issue Up to 600 Billion Won in Corporate Bonds

According to the investment banking (IB) industry on the 28th, SamsungSecurities (AA+) will conduct a bookbuilding process targeting institutional investors this week (June 29–July 3) for a public corporate bond offering. SamsungSecurities, which holds a high credit rating, will begin the bookbuilding process on July 2. The planned issuance size totals 300 billion won.

The tranches (maturities) consist of 100 billion won in 2-year bonds, 150 billion won in 3-year bonds, and 50 billion won in 5-year bonds. Depending on the results of the bookbuilding, the issuance amount may be increased to a maximum of 600 billion won. The target yield spread has been set at a level ranging from -30 basis points (bps; 1 bp = 0.01 percentage point) to +30 bps relative to the ratings assigned by individual private bond rating agencies.

Korea Ratings Corporation, Korea Credit Rating, and NICE Credit Rating all assign SamsungSecurities a credit rating of “AA+.” The rating outlook is “stable.”

SamsungSecurities continues to demonstrate strong profitability, driven by a robust stock market and rising trading volumes. Operating net income for the first quarter of this year reached 845.1 billion won, an increase of 283.2 billion won compared to the same period last year. Revenues from brokerage and asset management rose by 245.3 billion won and 41.2 billion won, respectively, while investment banking (IB) segment revenues also grew, driven primarily by debt guarantees and loan interest. As a result, net income for the first quarter reached 420.0 billion won. Return on assets (ROA) stood at 2.1%, and the ratio of selling, general, and administrative expenses to net operating revenue was 33.1%, reflecting excellent profitability.

Capital adequacy indicators also improved. As of the end of March 2026, the adjusted net capital ratio (adjusted NCR) and net capital ratio stood at 217.7% and 2,332.8%, respectively, up from the end of the previous year. The adjusted leverage ratio remained at a healthy level of 7.6 times.

Kim Seon-ju, a senior analyst at Korea Credit Rating, stated, “Although financial market volatility remains high, the bank is expected to maintain excellent resilience in its performance, supported by a solid business foundation in the retail sector and diversified revenue streams.” She added, “Capital adequacy indicators, such as the adjusted NCR, are expected to remain at a sound level thanks to stable profit generation and capital accumulation through retained earnings.” However, she added, “It is necessary to monitor whether financial soundness indicators will deteriorate due to an expansion of risky investments and the deterioration of investment assets.”

Credit Spreads in the 65-bp Range… Selective Investing Intensifies

Meanwhile, investor sentiment toward corporate bonds has been rapidly deteriorating recently. According to BondWeb, as of the 26th, credit spreads widened to 65.1 bp. This represents a significant increase compared to the 48.9 bp level recorded on January 12. The credit spread refers to the difference between the yield on a 3-year AA-rated corporate bond and the yield on a 3-year government bond. A widening spread indicates weakening investor sentiment toward corporate bonds.

Amid recent increased interest rate volatility, the combination of the JR GLOBAL REIT crisis and the Jungang Group crisis has heightened caution across the credit market as a whole. In particular, with the yield on 3-year government bonds rising to around 3.7% per annum, analysts suggest that institutional investors now have little incentive to actively purchase corporate bonds while bearing credit risk. As of today, the yield on 3-year AA- rated corporate bonds stood at 4.41%, while the yield on 3-year government bonds was 3.76%.

A bond market official stated, “Recently, the market is not driven solely by the attractiveness of yields; there is a growing tendency to also consider the potential for principal loss in the event of a credit event,” adding, “While demand may flow toward issues backed by solid earnings and ratings, it appears it will take time for the positive sentiment to spread to other credit instruments.”