Financial Supervisory Service and Korea Securities Depository Hold Meeting on 'Revised Asset Securitization Act'

Mandatory Disclosure of Issuance Details for Non-Registered Securitized Assets
One-Month Compliance Check for New Regulations

On the 8th, the Financial Supervisory Service announced that it held a meeting with domestic securities firms targeting securitized bond issuing lead managers, jointly with the Korea Securities Depository.

Going forward, under the revised law, non-registered securitized bonds will also be subject to disclosure of issuance details and risk retention obligations.

Lead managers (securities firms) must ensure that trustees clearly input the issuance details of securitized bonds into the Korea Securities Depository. Additionally, when designing securitization structures, they must verify whether the risk retention obligation regulations apply and inform asset holders accordingly.

The Korea Securities Depository provided guidance on the major changes in the expanded and revamped integrated securitized bond information system reflecting the revised legislation. They also introduced the system’s structure and the changed work processes for issuers and others.

The Financial Supervisory Service also published a revised version of the "Asset Securitization Practical Guide," which contains the key contents of the amended Asset Securitization Act.

From the 12th of this month to the 11th of next month, the Financial Supervisory Service will inspect the compliance status of securitized bonds issued during the one-month period. They will promptly address deficiencies and strengthen guidance.

The Financial Supervisory Service stated, "Together with the Korea Securities Depository, we will actively support the smooth establishment of the amended Asset Securitization Act in the market."

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