“HF hosts an international seminar for the first time in Asia”

- On the theme of how to develop the Asian housing finance market –

The Korea Housing Finance Corporation (HF, CEO Joo-jae Lim) hosted the “2011 International Seminar for the Asian Housing Finance Market” at the Millenium Seoul Hilton Hotel on the Namdaemoon-ro on June 22 with representatives of public housing finance agencies from Asian countries in attendance.

As the first international seminar hosted by an Asian public housing finance agency, this event was held in order to exchange opinions on the status of housing finance markets of major Asian countries and policy directions and discuss ways to promote the development of the housing finance markets in Asia.

HF CEO Joo-jae Lim said in his opening speech, “The need for system improvement and the importance of policy finance's roles in order to enhance the stability of the housing finance market are increasing.” He also stressed, “It's needed to promote continued bilateral and multilateral exchanges and lay the grounds for future cooperation.”

“Given the growth potential of Asian countries showing relatively faster economic recovery in the midst of the global financial crisis, the impact of the Asian housing finance markets on the international market will continue to rise,” said Financial Services Commission (FSC) commissioner Suk-joon Lee in his congratulatory speech. “Asian countries can speed up the development of the housing finance markets through mutual cooperation and exchanges among housing finance agencies”

Michael Fratantoni, director of housing finance policy with U.S. Mortgage Bankers Association (MBA), pointed out at the seminar that ▲ the slow pace of economic recovery, ▲ high unemployment and a rise in mortgage rates are obstacles to revitalizing the U.S. housing market. And he predicted that the U.S. housing market will show recovery in 2012 with the trading volume growing by 9.1 percent compared to this year.

“For securing financial stability and developing the mortgage and long-term bond markets in Asia where mortgage markets are growing, the responsibility and role of public housing finance agencies is important,” said Professor Chang-gyun Park at Chung-Ang University. “Coordination among Asian public housing finance agencies is needed to strengthen financial cooperation in the region.”

Boudewijn Dierick, director of flow ABS & covered bonds structuring at BNP Paribas, stressed the increasing importance of covered bonds following the global financial crisis and predicted that the role of covered bonds would grow in revitalizing the mortgage market in the future.

Meanwhile, foreign participants, academics and experts from housing finance and bond markets participated in the seminar and actively discussed how to develop the housing finance and bond markets in Asia.