ABS Issuance Surges 26.5% in First Half on Expansion of Bogeumjari Loan Program

Registered ABS Issuance in the First Half of 2026 Hits 26.6 Trillion Won

The issuance of asset-backed securities (ABS) in the first half of this year surpassed 26 trillion won. This increase is attributed to the expansion of the Bogeumjari Loan program, which led to a rise in the issuance of mortgage-backed securities (MBS).

According to the "ABS Issuance Performance for the First Half of the Year" released by the Financial Supervisory Service on the 29th, the amount issued in the first half amounted to 26.6 trillion won, marking an increase of 5.6 trillion won (26.5%) compared to the same period last year. ABS refers to securities issued using illiquid assets such as real estate, trade receivables, or residential mortgage loans as collateral. Registered ABS, issued pursuant to the Asset-Backed Securitization Act, require submission of a registration statement and other related documents to the Financial Services Commission and the Financial Supervisory Service.

This growth trend is analyzed to be the result of the MBS issuance volume increasing to 11.7 trillion won in the first half. Thanks to the expanded sales of Bogeumjari Loans, the MBS issuance volume increased by 6.4 trillion won from the previous year. In addition, the revision of the Credit Guarantee Fund Act last October allowed the Credit Guarantee Fund to issue asset-backed profit securities directly through its own trust account, which also contributed to the increase. The issuance volume in the first half was recorded at 269 billion won.

Analyzed by type of securitized asset, the issuance of loan-receivables-based ABS reached 16.98 trillion won, an increase of 33.7% from the previous year. Issuance of trade-receivables-based ABS also rose by 37.7% to 6.9751 trillion won. While both loan receivables and trade receivables ABS issuances increased from a year ago, the issuance of primary collateralized bond obligations (P-CBO), which are based on newly issued corporate bonds by small and medium-sized enterprises, decreased.

By asset holder, the expansion in MBS issuance by Korea Housing Finance Corporation stood out, leading to a surge in public institution issuance volume to 11.9869 trillion won, representing a 123.1% year-on-year increase. Of this, Korea Housing Finance Corporation alone issued 11.7179 trillion won, up 118.1% from the previous year. Meanwhile, financial companies (10.5794 trillion won) saw a 14% overall increase, driven by a sharp rise in card-receivable-based ABS issuances by card companies. In contrast, general corporations (4.0172 trillion won) saw a 36.8% decrease in total issuances due to a decline in real estate project financing-backed ABS.

As of the end of June, the total outstanding balance of registered ABS stood at 246.5 trillion won, up by 3.4 trillion won (1.4%) compared to the end of the same period last year (243.1 trillion won).

This content was produced with the assistance of AI translation services.