SC Bank Korea Signs 'Covered Bond Payment Guarantee' Agreement with KHFC... Strengthening Long-Term Funding

On April 23, Standard Chartered Bank Korea announced that it had signed a "Covered Bond Payment Guarantee Agreement" with Korea Housing Finance Corporation to promote the supply of long-term, fixed-rate mortgage loans.

Kwanghee Lee, President of Standard Chartered Bank Korea (left), and Kyunghwan Kim, President of Korea Housing Finance Corporation, are posing for a commemorative photo after signing the "Covered Bond Payment Guarantee Business Agreement" at the Standard Chartered Bank Korea headquarters in Jongno-gu, Seoul on the 23rd. Standard Chartered Bank Korea

Through this agreement, the two institutions have agreed to solidify the issuance framework for covered bonds by private financial institutions and to cooperate for the stable development of the domestic housing finance market. By providing a payment guarantee for the covered bonds issued by Standard Chartered Bank Korea, Korea Housing Finance Corporation aims to support the government's policy to improve the household debt structure and strengthen the ability of private financial institutions to independently secure long-term funding.

Standard Chartered Bank Korea expects that issuing covered bonds will enable it to manage liquidity in a stable manner and, by securing trust through the payment guarantee, to better respond to market volatility, allowing it to focus on customer-centric financial services. Korea Housing Finance Corporation also plans to further enhance stability and public interest in the housing finance market through agreements with private financial institutions.

Kwanghee Lee, President of Standard Chartered Bank Korea, stated, "We are very pleased that this agreement will further increase market confidence in covered bonds issued by private financial institutions. Standard Chartered Bank Korea will continue to contribute to the qualitative growth of the domestic housing finance market based on a stable funding structure and take the lead in building an advanced, private sector-driven financial environment." Kyunghwan Kim, President of Korea Housing Finance Corporation, said, "With this agreement, we have now laid the groundwork to promote long-term, fixed-rate mortgage loans at a total of nine banks. Korea Housing Finance Corporation will continue to actively support covered bond issuance in close cooperation with private financial institutions."

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