The South Korea Financial Supervisory Service reported that asset-backed securities issuance rose by KRW5.6 trillion, or 26.5% year over year, to KRW26.6 trillion in the first half of 2026. Loan-based issuance increased 33.7% to KRW17.0 trillion, while issuance backed by accounts receivable rose 37.7% to KRW7.0 trillion. Primary collateralized bond obligation issuance declined to KRW2.6 trillion. The increase was led by the Korea Housing Finance Corporation, whose mortgage-backed securities issuance rose 123.1% to KRW11.7 trillion as sales under the Bogeumjari Loan program increased. Financial companies raised issuance by 14.0%, supported by credit card receivables, while nonfinancial companies’ issuance fell 36.8% amid lower real estate project finance ABS activity. The outstanding ABS balance was KRW246.5 trillion at end-June, up 1.4% from a year earlier. The Korea Credit Guarantee Fund also issued KRW269 billion of asset-backed beneficial certificates through a self-trust structure for the first time. It plans further issuance under that structure in the second half of 2026 alongside issuance through a traditional special purpose company structure.
South Korea Financial Supervisory Service2026-07-30
South Korea Financial Supervisory Service reports 26.5% rise in first-half ABS issuance to KRW26.6 trillion
The South Korea Financial Supervisory Service reported that first-half 2026 ABS issuance increased 26.5% to KRW26.6 trillion, led by a 123.1% rise in Korea Housing Finance Corporation mortgage-backed securities. Issuance backed by loans and accounts receivable grew, while real estate project finance ABS and primary collateralized bond obligations declined. The outstanding ABS balance reached KRW246.5 trillion at end-June.