South Korea’s Q3 Asset-Backed Securities Issuance Rises 47.4% on State-Run Housing Finance Activity

Seoul—The Financial Supervisory Service (FSS) reported a substantial 47.4 percent rise in the issuance of asset-backed securities (ABSs) in South Korea for the third quarter, year-on-year, driven by activity from the state-run Korea Housing Finance Corp.

According to a new release by Yonhap News Agency, the ABSs issued in the three months that ended in September totaled 17.6 trillion won (approximately US$12.3 billion). This marks a 47.4 percent increase compared to the same period last year. ABSs are securities based on assets such as mortgages, auto loans, credit card receivables, and student loans.

The financial regulator identified the surge in mortgage-backed securities (MBSs) issued by the Korea Housing Finance Corp as the main factor behind the overall rise in ABS issuance. In the July-to-September period, the housing company issued MBSs totaling 12.3 trillion won, an increase of 8.3 trillion won from the previous year.

Conversely, ABS issuance by financial companies decreased by 2.1 trillion won to 3.9 trillion won, while that by non-financial companies also declined by 500 billion won to 1.5 trillion won over the cited period.

As of the end of September, the outstanding amount of ABSs stood at 246 trillion won, marking a 6.7 percent or 15.5 trillion won increase from a year earlier.

scroll to top