South Korea's Financial Supervisory Service published data showing that asset-backed securities (ABS) issuance fell 5.7% from a year earlier to KRW 12.5 trillion in the third quarter of 2026. A sharp contraction in real estate project finance securitization contrasted with increases in mortgage-backed securities (MBS) and issuance backed by credit card receivables. Loan securitization declined 8.8% to KRW 7.5 trillion as issuance backed by real estate project finance and nonperforming loans decreased. Real estate project finance issuance fell to KRW 20 billion from approximately KRW 1.2 trillion, reflecting a base effect from elevated issuance backed by Korea Housing & Urban Guarantee Corporation guarantees a year earlier. This decline also drove a 58.7% reduction in issuance by nonfinancial companies to KRW 981.5 billion. MBS issuance by Korea Housing Finance Corporation increased 13.0% to KRW 5.8 trillion, although annual growth slowed amid weaker demand for the Bogeumjari Loan program. Securities backed by accounts receivables rose 9.9% to KRW 4.1 trillion, as increased credit card securitization outweighed declines in installment sales and trade receivables issuance. Total ABS outstanding reached KRW 246.6 trillion at the end of September 2026, up KRW 3.1 trillion from a year earlier.
South Korea's Financial Supervisory Service reports 5.7% fall in asset-backed securities issuance to KRW 12.5 trillion
South Korea's Financial Supervisory Service reported that asset-backed securities issuance declined 5.7% from a year earlier to KRW 12.5 trillion in the third quarter of 2026. Real estate project finance securitization fell sharply against an elevated prior year base, while mortgage-backed securities and issuance backed by credit card receivables increased. Outstanding securities totaled KRW 246.6 trillion at the end of September, up KRW 3.1 trillion from a year earlier.