KODIT Attracts Foreign Capital for the First Time in MBS Issuance... 300 Billion KRW Scale

Singapore's 2nd Largest Investment Bank UOB Invests 300 Billion KRW in Domestic Issued MBS

[Asia Economy Reporter Kwon Haeyoung] Korea Housing Finance Corporation announced on the 13th that United Overseas Bank (UOB), the second largest investment bank in Singapore, invested 300 billion KRW in Korean won-denominated mortgage-backed securities (MBS) twice this year.

This is the first time since the establishment of the Korea Housing Finance Corporation in 2004 that a foreign financial institution has invested in domestically issued Korean won MBS.

To pass UOB's strict investment criteria, including ▲soundness of underlying assets and ▲stability of MBS structure, the Korea Housing Finance Corporation actively responded to UOB's data requests and on-site inspections, leading to foreign investment of 300 billion KRW in 3-year maturity MBS in two rounds last month and this month.

A representative of the Korea Housing Finance Corporation said, "With this UOB investment, Korea Housing Finance Corporation's MBS has proven in the international financial market that it is a competitive product with stability comparable to government bonds and monetary stabilization bonds," adding, "We will continue to make efforts to expand the investment base by actively attracting foreign investment domestically along with issuing overseas covered bonds."

Meanwhile, the Korea Housing Finance Corporation plans to issue securitized bonds worth 45 trillion KRW this year due to the increase in policy mortgage supply such as Safe Conversion Loans and Bogeumjari Loans.

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