Hyosung Chemical stock faces renewed refinancing pressure
Published on 11/11/2026 at 00:12 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSFunding Pressure Remains Elevated
- Hyosung Chemical continues to face high borrowing costs despite substantial debt repayments.
- Hybrid securities and short-term bonds are increasing refinancing pressure.
- The company returned to an operating loss in the third quarter as core business profitability weakened.
Hyosung Chemical faces renewed financing pressure despite repaying more than 1 trillion won in borrowings, according to a November 6 report by Financial News. The report said the company issued private-placement bonds at interest rates near 7 percent while some hybrid securities now carry an 11.8 percent rate.
Short-Term Funding Raises Risk
Hyosung Chemical issued 10 billion won of six-month private-placement bonds at 6.7 percent, following additional issues at 6.75 percent and earlier funding at the same broad level. The three most recent private placements totaled 68 billion won and mature in April and May 2027, creating a concentrated refinancing requirement.
Financial News cited Korea Investors Service data showing that Hyosung Chemical repaid 1.1192 trillion won of borrowings last year using proceeds from asset sales, including its specialty-gas business and the Onsan tank terminal. Consolidated borrowings nevertheless stood at 1.6069 trillion won at the end of March, with short-term borrowings accounting for 79.7 percent.
Hybrid Securities Add Interest Expense
The company did not exercise call options on two 100 billion won hybrid securities issued in 2024. Their interest rate rose from 8.3 percent to 11.8 percent, lifting annual interest payments on the two instruments from 16.6 billion won to 23.6 billion won. Financial News reported that total hybrid-capital debt, including a convertible bond held by Hyosung, reached 500 billion won.
The funding burden is occurring alongside weaker operating performance. Hyosung Chemical generated operating profit of 171.1 billion won in the first half of 2026 but posted an operating loss of 19.5 billion won in the third quarter. The report attributed the deterioration to weakness in the company's core business, adding that logistics costs and lower product prices weighed on profitability.
Hyosung Chemical Corporation
- Company: Hyosung Chemical Corporation
- ISIN: KR7298000001
- Ticker: 298000.KS
- Focus: Petrochemicals and specialty chemical materials
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