Real estate securitization in Korea : application of PF ABS and MBS

This thesis studies the application of securitization such as Project Finance Asset-Backed Securities (PF ABS) and Mortgage Backed Securities (MBS) as a method of real estate finance in Korea. Real estate in Korea has developed substantially with a remarkable economic growth in last 20 years. As real estate became one of the most popular investment methods, real estate finance also developed into a more diversified and complex structure. Real estate securitization provides an alternative to the traditional way of financing by liquidating the real estate related assets and makes access easier for all participants in the process. In Korea, real estate securitization was first adopted in 1999, with the initiation of the Asset Securitization Act. Though the concept of Asset-Backed Securities (ABS) started late compared to the global securitization industry, the Korean ABS market has grown so substantially that the total issuance amount reached $43 billion in 2019, having expanded by almost eight-fold from the beginning of the market in 1999. With a considerable progress in the market, some of securitization products have developed with distinctive features. Of many products, this thesis mainly studies two types of real estate securitization products, Project Finance Asset-backed Securities (PF ABS) and Mortgage-backed Securities (MBS). By going through the market trends and social context of both products, it will cover what can be suggested for further improvement of the real estate finance market in Korea

Name thesis:degree_name

Master

Department dc:contributor.department

Massachusetts Institute of Technology. Center for Real Estate

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2020

Author dc:creator

• Baek, Jee hee.

Advisor dc:contributor.advisor

• Walter Torous.

• Center for Real Estate. Program in Real Estate Development.

Statement dc:rights

• MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/129106

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/129106