SEOUL, Jan. 24 (Xinhua) -- Issuance of asset-backed securities (ABS) in South Korea posted a double-digit decline last year, financial watchdog data showed on Tuesday.
Sales of the ABS, which is issued to securitize money to receive in the future, totaled 60.7 trillion won (52 billion U.S. dollars) in 2016, down 27 percent from the previous year, according to the Financial Supervisory Service (FSS).
The state-run Korea Housing Finance Corporation issued 35.3 trillion won (30 billion U.S. dollars) in mortgage-backed securities (MBS) on booming real estate market that led to massive mortgage loans owed by households to banks.
Financial firms and banks sold 15.3 trillion won (10 billion U.S. dollars) and 3.5 trillion won (3 billion U.S. dollars) each in the asset-backed securities, with those by industrial companies, especially wireless carriers and airlines, reaching 10.1 trillion won (8.5 billion U.S. dollars).
Mobile operators tend to securitize monthly charges to receive from smartphone users, while airlines make air fees and air freight charges to receive in the future securitized.
