Issuance of asset-backed securities (ABS) in South Korea fell 20.2 percent year-on-year in the first quarter due to lower sales of mortgage-backed securities, data showed on Wednesday.

ABS issued in the January-March period amounted to 10.9 trillion won ($8.7 billion), down 2.8 trillion won from a year earlier, the data showed. of the Financial Supervisory Service (FSS).

ABS refers to asset-based securities such as mortgages, auto loans, credit card receivables, and student loans.

The decline was mainly driven by a decline in mortgage-backed securities (MBS) issuance by state-owned Korea Housing Finance Corp.

The agency sold 6.3 trillion won worth of MBS in the first quarter, down 2.8 trillion won from a year earlier, the data showed.

ABS issuance by financial companies increased by 200 billion won year-on-year to 2.4 trillion won, while ABS issuance by non-financial companies decreased by 200 billion won to 2.2 trillion won. wons.

At the end of March, ABS in circulation stood at 228.1 trillion won, up 7 trillion won, or 3.2 percent, from a year earlier, the data showed. (Yonhap)

By Kim Young-won ([email protected])