April 20, 2024

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[THE INVESTOR] The issuance of asset-backed securities  in Korea slid 22.5 percent on-year in the first-half of this year due to a sharp decline in sales of government-led mortgage funds, data showed on July 24.

The amount of ABS issues totaled 24.1 trillion won (US$21.30 billion) in the January-June period, compared with 31.1 trillion won for the same period last year, according to the data from the Financial Supervisory Service.

The decline came as the Korea Housing Finance Corp., the state-run mortgage agency, scaled down its mortgage-backed securities.

The amount of MBS issues by the Korea Housing Finance Corp. stood at 12 trillion won in the first-half of this year, down 33.7 percent from a year earlier, according to the data.

“The government’s policy for reducing household debts contributed to decreasing mortgage loans, and this resulted in the decline in MBS issuance,” the FSS said in a statement.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)