'ABS Integrated Information System' to Operate Next Year

[Asia Economy Reporter Oh Ju-yeon] A single platform that allows a comprehensive view of Asset-Backed Securities (ABS) information will be launched in January next year.

According to the financial investment industry on the 10th, the integrated information system for Asset-Backed Securities, built and operated by the Korea Securities Depository, is scheduled to undergo testing this month and begin operation from January 4th next year. Asset-Backed Securities refer to securities issued with assets such as real estate, accounts receivable, and mortgage-backed securities as collateral. Their primary purpose is to secure cash flow from assets that generally have low liquidity.

The core of this integrated information system construction is to establish a single platform so that investors and others can easily search and utilize ABS information. The Korea Securities Depository will operate the system, and the financial authorities had already announced the launch of such a system through the "Comprehensive Improvement Plan for the Asset-Backed Securities System" held in May.

Until now, disclosure information on Asset-Backed Securities has been made public through the Financial Supervisory Service’s electronic disclosure system (DART), and issuance information through the Korea Securities Depository’s Securities Information Portal (SEIBro). Credit rating information on securitized securities could be checked on credit rating agencies’ websites, but since individual information was scattered, there have been criticisms that investor information accessibility was low.

The Financial Services Commission announced an improvement plan for the Asset-Backed Securities system in May, including the establishment of an integrated ABS information system. According to this plan, the ABS integrated information system will provide core information such as issuance, disclosure, distribution, and credit rating of ABS at once based on unified standards. It will also comprehensively include key information on unregistered Asset-Backed Securities, build information on the overall securitization market, improve investors’ information accessibility, and enhance information transparency.

The Financial Supervisory Service plans to issue administrative guidance requesting ABS issuers to input securities information into the system.

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