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Structured Finance

“Strong track record of advising clients on innovative deal structures.”
– Chambers Asia-Pacific 2019

Overview

Kim & Chang’s Structured Finance Practice is comprised of attorneys (both Korean and foreign) and CPAs as well as other professionals with extensive market experience working in credit rating agencies, banks or securities dealers.  Our Practice is widely recognized as the leading force in the Korean structured finance market, providing innovative solutions for complex financing projects.

We identify the client's requirements accurately and quickly and offer legal and structural solutions that are also commercially sensible.  Our solutions oftentimes include innovative structures that offer low legal risk and high cost-effectiveness. 

Our strength comes from highly qualified professionals with market and industry knowledge and the Practice’s accumulated experience in the Korean structured finance market, and also from the close working relationships with the firm’s other major Practices, including tax, capital markets, and banking.  This enables us to provide an integrated service that encompasses each step of the transaction process from the initial structuring stages, including not just the documentation of the relevant agreements but also covering various regulatory and administrative filings.

Key Servicesshow

Asset Backed Securitization (ABS) 

We acted as legal counsel for the very first securitization of automobile installment sale receivables in 1999, and since then have played a leading role in various ABS projects involving not only ordinary assets, such as non-performing loans, mortgage loans, retail receivables, corporate receivables, and handset installment sales receivables, but also exotic assets, such as credit linked notes, receivables from financing of SOC projects, sales of land, real estate developments, and highway toll payments.  Our extensive experience enables us to provide forward-thinking services in response to the changing needs of clients, proposing new deal structures for new types of assets. 


Asset Backed Commercial Paper (ABCP) Conduit 

We worked on the first groundbreaking ABCP transaction in Korea and developed a structure where one SPC can be used to issue several serialized ABCPs, each supported by a separate pool of assets.  This structure was our Practice's timely response to the market's urgent need for a legally permissible vehicle for segregation of asset pools with different credit profiles. 


Credit Derivatives 

Our Practice has been able to accumulate extensive experience in various credit derivative products, such as credit default swaps, total return swaps, credit linked notes, and synthetic CDOs and structured financing based on credit derivative products.  Our in-depth expertise in the legal and regulatory framework within which the credit derivative transactions are to be conducted enables us to be well prepared to advise on regulatory, tax, and other relevant legal issues for credit derivative products and structured financing based on credit derivative products. 


Real Estate Project Financing 

Our Practice has worked on real estate project financing transactions that combine conventional lending with derivative technology coupled with asset backed securitization, an innovative financing model specially designed in response to the pressing demand for creative financing techniques in the real estate area. 


Covered Bonds

We contributed to the first issuance of structured covered bonds in the Asia-Pacific region (Kookmin Bank) and also the first issuance of statutory covered bonds in Korea (Korea Housing Finance Corporation (“KHFC”)) by providing legal advice on all aspects of those transactions to enable Korean financial institutions to successfully consummate the transactions.  In addition, realizing the needs for legal and systemic framework for covered bonds allowing Korean banks and also KHFC to issue covered bonds with more favorable terms and in a more timely manner, we had exerted continuous efforts to support the enactment of a dedicated covered bond statute on January 14, 2014, and also helped Kookmin Bank with each step of its successful issuance of covered bonds in the amount of USD 500 million on June 12, 2015 through a covered-bond program of USD 8 billion listed outside of Korea in accordance with the Korean covered bond legislation.

Key Experiencesshow

We provide legal advice to securities firms, banks, capital companies, mutual savings banks, and general corporations (such as wireless carriers, construction companies and airline companies).

 
  • Korea Housing Finance Corporation (mortgage loan receivables, cross-border statutory covered bond) / Korea Housing Finance Corporation
  • KB Covered Bond First Securitization Specialty Co., Ltd. (KB Covered Bond First International Limited) (mortgage loan receivables and credit card receivables, cross-border structured covered bond) / Kookmin Bank
  • KAL 8 Asset Securitization Specialty Company (KAL ABS 8 Cayman Limited) (trust bonds, cross-border ABS) / Korean Air
  • Five Star III Asset Securitization Specialty Co., Ltd. (OZ Wing II Cayman Limited) (trust certificates, cross-border ABS) / Asiana Airline
  • LH My Home Securitization Specialty L.L.C. (residential lease receivables and housing payment receivables, domestic ABS) / Korea Land & Housing Corporation
  • Dream Hub First Securitization Specialty Co., Ltd. (loan receivables, domestic ABS) / Hana Bank, Woori Investment & Securities Co., Ltd. 
  • Autopia Forty-fifth Securitization Specialty Co., Ltd. (Hyundai Capital Auto Funding VIII Limited) (auto loan receivables, cross-border ABS) / Hyundai Capital Services, Inc. 
  • Challenger XVI Securitization Specialty Co., Ltd. (Frontier Securitization XVI Limited) (credit card receivables, cross-border ABS) / Samsung Card Co., Ltd. 
  • Shinhan Card 2018-1 Asset Securitization Specialty Co., Ltd. (Shinhan Card 2018-1 International Ltd.) (credit card receivables, cross-border ABS) / Shinhan Card Co., Ltd. 
  • Supreme Thirteenth Securitization Specialty Co., Ltd. (credit card receivables, cross-border ABS) / Lotte Card Co., Ltd. 
  • Shinhan Mortgage Second Securitization Specialty Co., Ltd. (Shinhan Mortgage Second International Limited) (residential mortgage loan receivables, cross-border ABS) / Shinhan Bank
  • First Home Loan No. 9 Limited (Korea First Mortgage No. 9 Limited) (residential mortgage loan receivables, cross-border ABS) / SC First Bank
  • EW Securitization Special Purpose Company (EW Global Fund Limited) (franchise trade receivables, cross-border ABS) / E.Land World Ltd. 
  • Credipia 2005-3 Asset Securitization Specialty Co. (credit card receivables, etc., domestic ABS, master Trust) / LG Card Co., Ltd. 
  • Goldwing Co., Ltd. (the first ABCP Conduit established by domestic financial institution) / Shinhan Bank
  • Woori CLN Securitization Specialty Co., Ltd. (CLN, domestic ABS) / LG Investment & Securities Co., Ltd. 
  • True Friend 3rd Co., Ltd. (derivatives linked securities, domestic ABCP) / Korea Investment & Securities Co., Ltd. 
  • True Friend 4th Securitization Specialty Co., Ltd. (CLN, domestic ABS) / Korea Investment & Securities Co., Ltd. 
  • KHC 5th Securitization Specialty Co., Ltd. (toll road management right, domestic ABS) / Korea Expressway Corporation 
  • KB Bond First Securitization Specialty Co., Ltd. (privately placed bonds, domestic CBO) / Kookmin Bank
  • olleh KT Sixteenth Securitization Specialty Co., Ltd. (handset installment sales receivables, domestic ABS) / KT Corp.
  • Uplus LTE Forty-Second Securitization Specialty Co., Ltd. (handset installment sales receivables, domestic ABS) / LG Uplus Corp.
  • Wise Mobile Eighteenth Securitization Specialty Co., Ltd. (handset installment sales receivables, domestic ABS) / KookminCard Co., Ltd.
  • SMORE Thirty-Ninth Securitization Specialty Co., Ltd. (handset installment sales receivables, domestic ABS) / Shinhan Card Co., Ltd.
  • Commercial Auto Ninth Securitization Specialty Co., Ltd. /auto loan receivables / Hyundai Commercial Inc.
  • Capital Auto First Securitization Specialty Co., Ltd. / Hyundai Capital Services, Inc. 
  • Giga LTE Forty Securitization Specialty (handset installment sales receivables, Domestic ABS) / SKT
  • Kodit 2018 The 6th Securitization Specialty Co., Ltd. / Kodit P-CBO
  • Mobile Fintech 2nd Securitization Specialty Co., Ltd. 
  • 2018 Kibo 2nd Securitization Specialty Co., Ltd.

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