South Korea

Highlights

• 6 Oct 2011
  • Loan-to-value ratio the primary driver of default frequency in Korean residential mortgage loans
    Our report shows that, apart from the loan-to-value ratio, attributes such as a borrower’s age and principal payment type have a medium to low impact on default frequency. Also, most of the loans in the auction pool had their auctions completed within 12 months and in most cases, the amount collected could fully cover the outstanding principal amount plus accrued interest... Full Report l Press Release
  • US and Korean ABS markets show similarities, but more cash advances in Korea
    Our report shows that cash advances contribute to a much larger portion of Korean card transaction volumes than in the US and regulators are controlling their growth, as they are considered risky. The US and Korean ABS markets share similarities in card operations, such as card features, which include charge-off policies and card issuers’ assessments of cardholders’ risks... Full Report l Press Release