So I gave a talk um the three parts The first part is that uh we are faced with mega trends some mega trends but also hopefully temporary political fragmentation which affects the capital markets in Korea specifically or globally globally Yeah um it can increase volatility which is uh detrimental for uh well functioning u finance system and so I I went through sort of three mega trends u so we're faced with um uh climate change and green transition then uh we have we're going through demographic shift and then also um technology So the digital uh digital um or transition or the force industrial revolution or however you call it So uh against this backdrop and and uh heightening uncertainties and politically driven uh what uh we can do together to um make the uh housing finance system more resilient and more inclusive and more sustainable Um and of course u covered bonds are a very very promising instrument in especially in times of crisis and hardships because uh covered bonds have survived many many economic crisis and hardships uh and prove proven themselves as safe and uh liquid asset for investors and uh we have uh we are sort of uh relatively new to the uh European covered bond market but we uh we um aligned ourselves with the the regulations and transparency and other requirements uh which were accumulated over the years in Europe and use them as our benchmark and also the basis from which we uh improve our our own systems So we are grateful to that and uh our mandate uh as a semi government entity is to facilitate the uh supply of long-term fixed rate mortgages to help especially first-time home buyers uh buy their homes at affordable uh terms Mhm And in so doing we tap the capital markets both domestic and overseas So in the domestic market we issue uh mortgage back securities and in the overseas markets we mainly issue covered bonds and our covered bonds are considered social uh social bonds because all the underlying mortgages uh provided to home buyers of a middle to lower uh lower middle income households And we we have some preferential treatment to socially disadvantaged So this counts as a social but we are also committed to um the greening the housing stock help greening the housing stock by providing uh green mortgages and we started our operation a few years ago but uh you know it's temporary I mean it's a tenative uh conclusion maybe but what we found is that green movies perform better than our standard fixed rate mortgages in the sense that delinquency rate was lower significantly lower and also prepayment rate is all also lower Uh and in terms of the underlying assets uh the houses used as collateral to these underlying mortgages green mortgages uh are associated with lower energy bills So uh you know this is something really uh of an example of doing well by doing good So doing good to the environment to the sustainability but both the lender and the borrower find it uh profitable So we want to carry this forward on a larger scale and we plan to issue our first uh green covered bonds probably sometime next early next year. So that's what we're doing And Korea is one of the uh mostly uh one of the most uh rapidly aging societies And now uh 20% of our population uh consists of those of age 65 and above And we have a national pension system but the uh the pension amount is not sufficient to finance retirement On the other hand most of the uh senior citizens have a house maybe too Uh so they but their um property their asset is all tied up with this um illquid asset So uh we introduced what we call home pension which is actually uh reverse mortgage in 207 so that um senior citizens can take their uh housing asset and provide it as collateral to us and then uh we put a guarantee uh for the banks who would lend uh mortgage mortgages reverse mortgages to the senior citizens This way senior citizens can stay where they have been living for a long time uh and also raise some um regular income to finance their living expenditures So this is a an important business and we want to uh expand this and there have been some constraints Uh still the most serious constraint is that uh the senior citizens would very much like to bestow the property or pass that onto their children rather than using it to finance their uh own living expenses which is totally understandable But uh given long longevity I mean a 85 and older uh prospect of u living without adequate income in retirement is more more serious problem than you know than consideration of their children So we say okay you can use some of your equity from uh uh you accumulate in your home to finance your retirement but you still will be left with some some of your equity uh that can be passed on to your children So this is what we do And finally there are uh we have a unique uh rental system uh known as chun whereby you have to put 50% of the value of the house to be a tenant So these days about 40% of tenants uh borrow money to finance the deposit and we put a guarantee on the deposit uh on on the loans the bank's issues uh so that the borrower can take the loan proceeds to make the uh deposit and also there is a there is a risk of the landlord uh not being able to return the deposit in full amount at the end of the lease to the tenant Therefore we uh introduce a new guarantee uh against the uh against the event that landlord uh finds it impossible to return the deposit to the tenant at the end of the lease So uh these are what we're doing and uh we as a uh public sector institution committed to strike a balance between economic uh efficiency and social responsibility uh in our country But we are also committed to engage ourselves in uh global um agenda and making modest contribution uh while learning from our partners around the world I think the um those last two products in particular are very interesting and they speak to things which are problems all over the world Mhm And for example the releasing value against a senior citizen's house In the European context it's often thought about affordability Yeah Yeah They want to inherit the house but with longevity I don't want to wait Yeah But providing a deposit to be able to buy So so the parents will borrow in that way and then pass on the money Um so the person can then buy a house where they're living or want to live or work But the problem is financing it and the same with the 50% mortgage or 50% rental model How does that fit into existing covered bond structures i'm not sure if uh how if and how reverse mortgages can be securitized either in you know mortgage back securities or public bonds And in principle it should be possible because it's a form of mortgage uh and it it can be packaged into uh an MBS or a covered bond But I don't know of any example of that in in in practice. Well that's something uh we should think about think hard about because uh I mean at at the at the current level of uh scale of operation uh we really don't need additional capital to uh to provide guarantees on reverse mortgages in Korea and we have we manage a government fund uh from which we can uh use that in the event that uh mortgage reverse mortgage contract uh is completed either because the borrower uh passes away uh or some other things happen Uh but in in that event uh we we are supposed to pay the bank the balance and then uh sell the house to uh recoup the um recoup the money that we uh spent um pay repaying the the bank on behalf of the borrower But it's a it's in a manageable u range of our uh source of revenue So for now uh I think we will continue with our current model of operation But but if you're using taxpayers money ultimately the objective should be to find capital market solutions to take it out True And when you have so many people aging and entering that that need for that product I think eventually we have to start looking we might come to a stage where the scale of operation um is so large that uh it requires additional funding mechanism Yeah And I suppose you can use actarial skills actarial techniques to work out the the cash flow from the sales of the house That's great It's but it's quite difficult to fit that into a rating agency assumptions I think it will be a complex uh complex structure Yeah Yeah and you're here your your products fit into the um fit into existing cover bonds as you mentioned earlier to the standard frameworks but also maybe looking for solutions to that kind of problem capital markets innovations **** um I think the innovation uh can come from the primary market and also from the secondary market and we are sort of uh witnessing the emergence of new technologies and token people talk about tokenization and using AI uh to sort of identify a credit footprint of those potential borrowers who would otherwise won't be able to qualify for a loan So if you can trace the say your phone bills uh mobile phone bills and credit card payments and so o n uh and you can if you can use this additional information or non-conventional uh set of information to qualify uh otherwise uh difficult to qualify people So I think that that's another example and we can uh devise a platform uh to sort of manage risk in a more cost effective way So uh there should be some innovative ways of uh identifying in managing risk which will help lower the cost of funds Yeah So so that's that's something we're interested It's great that we're having this dialogue and you're coming over here and sharing ideas So thank you so much for Can I Can I please yes Can I wait um I you know I I am a an a housing and urban economist by training and the point one of the points that I uh make uh many times is the uh role of housing finance and its limitations in making housing affordable Now the housing affordability crisis is a global concern uh it applies to many advanced countries and it very often it's caused by high and rising prices due to inadequate supply which in turn is caused by strict regulations on the use of land or building regulations So we have to work on the supply side of the housing market uh to improve affordability and if that doesn't happen we can put a best housing finance system in place supported by securization of mortgage back securities or public bonds but still housing can remain unaffordable to many potential homeowners That's um that's one point and the other point is that we are trying to promote this green mortgages but uh green green mortgages use underlying assets which are green uh uh which are uh green homes and green homes are more expensive to build and developers do not like it because it will raise the cost and uh they have to sell at higher prices Consumers are reluctant because they are not confident that it's worth spending more time to buy a green home So we need to uh establish credible evidence that green homes not only do good to the global environment but also financially better for homeowners because they can save energy bill We are covered bond players Covered bonds require underlying mortgages and green mortgages require green homes And uh there has to be a match between demand and supply and we need to keep talking