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Congratulatory Remarks as the first Asian country ever to do so. The size of reverse mortgages,
which provide post-retirement income to the elderly by converting their
home ownership into a cash flow, has only continued to grow. Pension Ceremony Opening
Sungho Lee payouts have, for the first time, topped 1 trillion won, benefiting more

Standing Commissioner at Financial Services Commission
than sixty thousand households. Trophies are shiny, but we cannot stay
complacent.

Distinguished guests, good morning. I am Standing Commissioner We still have a large share of loans that are exposed to interest rate
Sungho Lee of the Financial Services Commission.First and foremost, risks, which pushes us to continue to work on improving the interest rate
please allow me to express my sincere congratulations on the convening structures of loans. The financial authorities are planning to provide a 20
of the 6th Asian Fixed Income Summit. The Asian Fixed Income Summit trillion won worth of "Inclusive Relief Loans", which leverages the MBS
has emerged into a strong financial network among eight institutions, issuing abilities of the KHFC to convert floating or semi-fixed rate loans
spurring cooperation for development of housing finance markets into fixed-rate loans. With this, we believe we can ease the borrowers'
across the globe. This summit holds special significance as it provides a burden of repayment, while also shielding them from interest rate risks.
platform on which housing finance experts from all over Asia can come
together to share ideas and discuss housing finance related matters, such Another challenge Korea's housing finance faces is the unprecedented
as securitization, reverse mortgages, and more. speed in which aging is taking place in the Korean society. With aging
in place, Korea is witnessing a fall in the consumption capacity of the
I would like to express my sincere gratitude to CEO Jung Hwan Lee elderly, hence a fall in economic vitality, which then is weighing down
of Korea Housing Finance Corporation for organizing this meaningful as a burden on welfare programs. Reverse mortgages should also be
event in the beautiful city of Busan, expert panelists for the fruitful adjusted in line with such changes; increasing the beneficiaries, easing
presentations and discussions, and Mayor Geodon Oh of Busan and the conditions for applicants, thereby more actively complementing
distinguished guests for gracing today's event with their presence.Korea public pensions.In particular, it is worth reviewing measures to increase
has witnessed impressive qualitative and quantitative growth in housing the payouts to reverse mortgage borrowers by increasing securitization
finance over the past decade. that KHFC is currently performing.

The qualitative structure of loans has improved, with most of them The UN declares that the right to adequate housing is a basic human
now long-term, fixed rate loans. Accordingly, the total origination of right, and advises all governments to strive to ensure the right to housing
home-backed loans leaped from 14 trillion won in 2007 to 118 trillion for all. I sincerely hope today's summit will provide a meaningful time
won in 2018. Mortgage-backed securities issued by the KHFC has not to gather ideas to provide everyone with resident stability. I will keep
only grown in size, but also has achieved qualitative growth, now highly the constructive and innovative cases to be brought up later today in
praised for its social value. mind, and actively apply them in devising Korea's housing finance and
securitization policies. Thank you.
It was certified as a Social Covered Bond, a name given only to bonds
issued for funding projects that create social value. KHFC has also
successfully issued euro-denominated social covered bonds last October

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