Shinhan Card Co., Ltd. as trustor entrusted its credit card receivables to Citibank Korea Inc. as trustee, and Citibank Korea Inc. issued a trust beneficiary certificate to an asset-backed securitization special purpose company (“ABS SPC”) in Korea.  Such ABS SPC then issued fixed rate ABS in the amount of KRW 350 billion with its trust beneficiary certificate as underlying assets, and KB Securities Co., Ltd. subscribed such ABS and sold them to a certain overseas investor.

This issuance is meaningful in that it was the first asset-backed securities issued in Korea under the ESG framework.  Kim & Chang advised on the overall aspects of the transaction and prepared various transaction documents to ensure that the funds raised from this transaction will be used for ESG purposes (i.e., contribution to environment, society and governance).  As ABS issuance under the ESG framework was not common in the Korean capital markets, this transaction is expected to serve as a landmark precedent for ESG financing in Korea.