The Asset-Backed Securitization Act of Korea was amended and the amendments came into effect on January 12, 2024. In line with such amendment, the enforcement decree and supervision regulations were also amended and implemented on January 12, 2024.
The amended ABS Act, enforcement decree, and supervision regulations include provisions on (i) mandatory disclosure of information on securitized assets, (ii) the credit risk retention rules, and (iii) the reorganization of qualifications for bond issuer administrator and transaction administrator and requisite system for prevention of conflicts of interest. These changes are expected to have a significant impact on future securitization transactions in Korea.
Please find attached the main points of the amended ABS Act, enforcement decree, and supervision regulations.
Attachment Amendments to ABS Act of Korea and Expected Impact on ABS Market.pdf
