South Korea recently saw its first two issues of mortgage-backed securities - both of which were domestic deals - but which deal is the first real MBS is a matter of friendly dispute. The Korean Mortgage Corp. (Komoco), the country's secondary mortgage agency, says it closed the first, but it may have been pipped at the post by a deal from NewState Capital that closed two weeks previously.

The difference of opinion arises because NewState's deal made use of Korea's recently amended ABS law, even though it was backed by mortgages, while Komoco's transaction used the country's MBS law, explained Kim Kyu-Jin of Daewoo Securities, the arranger of the NewState deal.

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