Dongwon Industries raised 200 billion won ($152 million) in a corporate bond sale that drew overwhelming investor interest, highlighting strong appetite for Korean corporate debt despite market uncertainties.
The Seoul-based company issued 140 billion won of three-year notes and 60 billion won of five-year securities, doubling its initial target after receiving bids totaling 765 billion won. The strong demand enabled the company to price both tranches 15 basis points below market rates.
The robust response comes as Dongwon works to diversify beyond its traditional fishing and food businesses into new ventures including land-based salmon farming and battery materials. The company also recently launched Korea’s first fully automated port terminal in Busan.
While management cited the firm’s stable growth trajectory and market position, some analysts note the aggressive expansion could pressure its AA- credit rating if new investments don’t deliver expected returns. The company plans to use proceeds to refinance existing debt and fund operations.
The successful sale suggests investors remain confident in Dongwon’s strategy even as Korean conglomerates face headwinds from rising costs and slowing global growth. The company indicated it may pursue acquisitions to accelerate its push into new industries.
