Vice Chairman Kim Soyoung of the Financial Services Commission attended an agreement signing event between Korea Housing Finance Corporation (HF) and five major commercial banks intended to facilitate payment guarantees on covered bonds on May 27. Following this agreement, HF will begin to provide payment guarantees on covered bonds issued by banks starting from today. At the event, the FSC also announced measures to support the covered bond market to facilitate commercial banks' supply of long-term, fixed interest rate mortgage loans. In his opening remarks, Vice Chairman Kim said that increasing the supply of long-term, fixed interest rate mortgage products should be considered as a persistent and ongoing policy task, regardless of the direction in the movement of interest rates. With the introduction of various measures intended to bolster demand for covered bonds and lower their issuance rates, Vice Chairman Kim said that it will be possible to provide fixed interest rate mortgages offering competitive rates even in times when interest rates are declining. The FSC plans to keep close tabs on the issuance and circulation of covered bonds along the way and seek additional measures and improvements to support the covered bond market.