Last Year ABS Issuance 66.1 Trillion Won... 50.2% Increase YoY

MBS Related to Special Bogeumjari Loan Up 115.1%
Increase in MBS, PF, and Other Loan Receivables ABS Issuance

The size of asset-backed securities (ABS) issued in 2023 increased by 50.2% compared to the previous year.

According to the "2023 ABS Registered Issuance Performance" announced by the Financial Supervisory Service on the 30th, the ABS issued after registering asset securitization plans in the first half of last year amounted to 66.1 trillion KRW, an increase of 22.1 trillion KRW (50.2%) from the previous year (44 trillion KRW).

The increase in overall ABS issuance was driven by the Korea Housing Finance Corporation's mortgage-backed securities (MBS) issuance, which rose by 19.8 trillion KRW compared to the previous year. Last year's MBS issuance totaled 37 trillion KRW.

The Financial Supervisory Service explained that the increase in MBS issuance was due to a rise in applications for the special Bogeumjari Loan, which was temporarily introduced on January 30 last year and served as the basis for issuing these MBS.

Notably, the increase in ABS issued based on loan receivables stood out. Loan receivables refer to mortgage loans, non-performing loans (NPL), small and medium enterprise loans, and real estate project financing (PF), among others. The ABS issued based on loan receivables last year amounted to 44.6 trillion KRW, an increase of 23.2 trillion KRW (108.4%) compared to the previous year. Specifically, MBS increased the most, followed by NPL (5.5 trillion KRW) and real estate PF (1.9 trillion KRW).

On the other hand, ABS issued based on accounts receivable decreased by 1.1 trillion KRW (6.4%) to 16.2 trillion KRW. Collateralized bond obligations (P-CBO) based on corporate bonds and others decreased by 100 billion KRW (1.9%) to 5.03 trillion KRW.