SEOUL — The issuance of asset-based securities (ABS) in South Korea experienced a significant decline in the second quarter, falling by 34.3 percent compared to the same period last year. This drop was largely due to decreased activity by the state-run Korea Housing Finance Corp., reflecting broader shifts in the financial landscape.
According to Yonhap News Agency, ABS issuance for the April-June period totaled 12.6 trillion won (US$9.15 billion), down from 19.2 trillion won a year earlier. ABS are financial securities backed by assets such as mortgages, auto loans, and credit card receivables. For the first half of the year, ABS issuance stood at 27.5 trillion won, marking an 8.2 percent decrease from the previous year. Despite this downturn, the total value of outstanding ABS as of the end of June was 257.2 trillion won, showing an increase of 7.9 percent from 238.4 trillion won a year earlier, indicating a complex dynamic in the market for securitized assets.