The issuance of asset-backed securities (ABSs) in South Korea shrank 20.2 percent on-year in the first quarter due to decreased sales of mortgage-backed securities, data showed Wednesday.

The ABS issued during the January-March period came to 10.9 trillion won ($8.7 billion), down 2.8 trillion won from a year earlier, according to the data from the Financial Supervisory Service (FSS).

ABS refers to securities based on such assets as mortgages, auto loans, credit card receivables and student loans.

The decline stemmed mostly from a fall in the issuance of mortgage-backed securities (MBSs) by the state-run Korea Housing Finance Corp.

The agency sold 6.3 trillion won worth of MBSs in the first quarter, down 2.8 trillion won from a year earlier, the data showed.

Financial firms' ABS issuance rose 200 billion won on-year to 2.4 trillion won, while the ABS issuance by non-financial firms shrank 200 billion won to 2.2 trillion won.

As of end-March, outstanding ABSs stood at 228.1 trillion won, up 7 trillion won, or 3.2 percent, from a year before, the data showed. (Yonhap)