Business · Markets · 1 hr ago
South Korean 91-day CP rate reaches 3.57% as borrowing costs rise
The rate on 91-day commercial paper issued by top-rated companies in South Korea reached 3.57%, its highest level this year.
It had risen for 12 consecutive trading days, gaining 0.31 percentage points since Sept.
21.
Commercial paper is short-term borrowing that companies use to raise money.
The increase came even as government and corporate bond yields fell, showing that short-term and longer-term borrowing costs are moving differently.
Market participants say short-term rates can be more sensitive to shifts in investor demand and cash flows, and some funds may be moving from short-term products into longer-term bonds.
Companies face higher costs when issuing new commercial paper, while more of it is coming due than being newly issued.
Several companies have commercial paper maturities scheduled through December, including Hanwha Galleria and Dongbu Construction in October, TVING and HD Hyundai Chemical in November, and Ssangyong C&E and HS Hyosung Advanced Materials in December.
South Korea’s 91-day A1-rated commercial paper rate reached 3.57%, its highest level of the year.
The rate rose for 12 consecutive trading days, increasing 31 basis points from 3.26%.
The rise contrasts with falling government and corporate bond yields, and is increasing attention to companies’ short-term borrowing costs.
Market participants point to shifts in short-term funding supply and demand as a factor behind the increase.
Some investors may be moving funds from short-term products into longer-term bonds as their yields decline.
- Who
- South Korean companies that issue commercial paper and investors in the short-term funding market.
- What
- The 91-day A1-rated commercial paper rate reached 3.57%, its highest level of the year.
- When
- Reported on October 13, 2026; the rate had risen for 12 consecutive trading days.
- Where
- South Korea.
- Why
- Market participants cite short-term funding supply and demand, including possible fund shifts into longer-term bonds.
This story does not have two clearly opposing sides.
The 91-day commercial paper rate began a 12-trading-day consecutive rise.
The rate rose 6 basis points in one day, its biggest daily increase in about 3 years and 11 months.
Yonhap reported that the 91-day A1-rated commercial paper rate had reached 3.57%, a yearly high.
- 91-day A1-rated CP rate
- 3.57%
- Consecutive rise
- 12 trading days
- Increase since September 21
- 31 basis points
- October CP net issuance
- Minus 27.4136 trillion won
- 91-day CD-CP rate gap
- About 33 basis points
What people are saying
Funds that avoided investing in medium- and long-term bonds during the period of rising interest rates had flowed into short-term products, but as medium- and long-term rates have recently fallen, funds appear to be moving back.
Sources
Related news
Hyundai Green Food adds care support for employees’ older relatives
APR shares fall as forecast points to weaker-than-expected third-quarter profit
Shoemarker shoes to be available for delivery through Baemin in South Korea
Samsung Electro-Mechanics executive honored for MLCC technology work
Broadcom and Intel CEOs warn funding could limit AI growth
Woori Bank gives 10 million won to military remains recovery agency
KIWOOM ETF to pay 146 won per share in October distribution
Southeast Asia emerges as a market for South Korea’s KF-21 fighter
KOSPI triggers five-minute trading halt as losses exceed 4%
South Korea’s Kospi falls more than 6% below 6,000
Won trades in the 1,330s as Samsung dividend and US rates pose risks
