Securitization in Korea, as elsewhere, demands an acute understanding of the logic, objectives and diverging interests involved in each deal, combined with a grasp of the latest developments in the international financial community. Our specialized group offers the state-of-the-art know-how and resources needed for expert structuring and negotiation of these relatively complex, document-intensive transactions.
Our abilities are grounded in our extensive involvement throughout the development of structured finance in Korea. Our practice group was instrumental in creating the earliest collateralized bond obligation (CBO) program, asset-backed commercial paper program and asset-backed loan program in Korea. We have been involved in nearly all of the CBOs and primary CBOs issued by Korean securities investment trust companies since 2000. We handled a number of other pioneering deals as well, including the Export-Import Bank of Korea’s US$230,000,000 issuance of securities backed by export financing loans, and Samsung Capital’s landmark US$200,000,000 auto-loan receivables securitization.
In recent years we have actively advised Korean and foreign financial institutions in many cross-border securitization deals in connection with sale or purchase of non-performing loans in Korea. Some of the major clients we have assisted in these transactions include GE Capital, Merrill Lynch, Shinsei Bank, Clearwater Capital, JP Morgan and ADM Capital.
For Korea Asset Management Corporation (KAMCO), one of the most important sources of structured finance deals in Korea, we handled the US$367,000,000 NPL-backed securities program, and advised in the design and issuance of its 99-2 bonds, 99-1 secured bonds and a number of other bond issues. Our team has advised both sellers and lenders in securitization packages offered by Chohung Bank (which merged with Shinhan Bank in 2006), the Korea Deposit Insurance Corporation and Seoul Guarantee Insurance.
Other major clients whom we have been privileged to serve, in structuring and negotiating securitization deals involving a variety of asset types, include the following:
• Daehan Investment Trust Management & Securities Co., Ltd.: CBOs and primary CBOs.
• Korea Exchange Leasing Company: lease receivables.
• Hyundai Merchant Marine: freight receivables (the first asset-backed commercial paper program in Korea).
• Hyundai Oilbank, Hanaro Telecom and Dreamline: future trade receivables.
• Samsung Card: credit card receivables.
• Macquarie Bank: construction projects.
• Korea Housing Finance Corporation: securitization of mortgage loans.
We would be pleased to furnish upon request a fuller description of our recent structured finance work.