On January 16, 2014, the Financial Services Commission of Korea (the “FSC”) issued a proposed draft of the presidential decree to the recently enacted Covered Bonds Act of Korea (the “Act”; and such decree, the “Proposed Presidential Decree”). The Proposed Presidential Decree prescribes detailed requirements with respect to covered bond issuances, and will be open to public comment until April 25, 2014. This newsletter outlines the major provisions of the Proposed Presidential Decree.

  1. Additional Requirements for Eligibility as Cover Pool Assets
  2. Limit on Aggregate Issuance Amount
  3. Program Issuance
  4. Use of Bond Proceeds and Repayment