The issuance amount of registered asset-backed securities (ABS) last year was reported to have decreased by over 20% compared to the previous year. This is due to the reduction in mortgage-backed securities (MBS) issuance by Korea Housing Finance Corporation following the termination of the special mortgage loan.
On the 30th, the Financial Supervisory Service noted that the issuance amount of registered ABS last year recorded 51.7 trillion won. By type of asset, the ABS based on loan receivables decreased from 44.585 trillion won in 2023 to 28.996 trillion won in 2024. In contrast, the ABS based on accounts receivable increased from 16.182 trillion won to 17.423 trillion won during the same period.
By holder, the issuance from Korea Housing Finance Corporation dropped sharply from 37.041 trillion won in 2023 to 18.954 trillion won in 2024 due to a slowdown in the housing market and the termination of the special mortgage loan. Issuance from financial companies fell from 20.898 trillion won to 25.077 trillion won during the same period. General corporations also decreased from 8.138 trillion won to 7.674 trillion won.
The total issuance balance of registered ABS was recorded at 257.6 trillion won as of the end of last year, an increase of 4.2 trillion won from the end of the previous year.
The FSS explained, "A key feature of last year's ABS issuance is the increase in non-performing loan (NPL) based products," adding, "For the first time, ABS from Saemaul Geumgo and credit cooperative unit associations were also issued."