Korea Mortgage Corporation Summary Of Project Information (SPI)       Project Name    Korea - KoMoCo      RegionAsia and Pacific   Sector   Project No009828   Projected Board DateJanuary 31, 2000   Company NameKorea Mortgage Corporation   Technical Partner and/or Major Shareholders    	The major shareholders in Korea Mortgage Corporation are Korea Ministry of Construction and Transportation (45%); H&CB (Housing and Commercial Bank) (15%); Korea Exchange Bank (15%); Kookmin Bank (15%); and  Samsung Life Insurance (10%).   A Foreign Technical Partner (FTP) is to be indentified.   After investments by the IFC and the FTP, the shareholding structure will be: Korea Ministry of Construction and Transportation (28.5%); H&CB (Housing and Commercial Bank) (14.25%); Korea Exchange Bank (14.25%); Kookmin Bank (14.25%); Samsung Life Insurance (9.5%); IFC (14.25%); and FTP (5%).    Project Cost Including proposed IFC investment    	Korea Mortgage Corporation is capitalized at KRW100 billion. IFC''s investment will consist of (i) an equity investment of KRW 15 billion won (approx.$12.5 million); and (ii) a credit enhancement commitment of up to US$80 million equivalent to support a placement of Mortgage Backed Bonds (MBB) and Mortgage Backed Securities (MBS) with long-term maturity to insurance companies and institutional investors in Korea    Location of project and Description of site    	Korea Mortgage Corporation is headquartered in Seoul, Korea.    Description of Company and Purpose of Project    The project is to establish a secondary mortgage market company, called Korea Mortgage Corporation (KoMoCo). This project could have a major impact not only in developing and deepening Korea''s housing finance sector, but also in creating and developing a new asset class, Mortgage Backed Bonds (MBB) and Mortgage Backed Securities (MBS), in the less developed Korean fixed income market. MBB and MBS do not currently exist in Korea, but the market will develop following enactment of the Mortgage Backed Securitization Company Act, to be approved by the Korea Parliament in December 1999.    The opportunity to establish KoMoCo results from:   ·	  Liberalization by the Korean Government of mortgage lending.   ·	  Legislation allowing the issuance of MBB''s and MBS''s - the last piece of legislation is a Mortgage-Backed Securitization Company Act to be enacted by the Parliament in December 1999.   ·	  The substantial inefficiencies that exist in Korea''s housing mortgage market.   ·	  The Korean government''s strong commitments to implement fundamental structural reform of financial markets by fostering greater competition throughout the financial sector and encouraging development of fixed-income capital markets as an alternative to bank credit.    The project will:    ·	  Diversify the country''s home mortgage lending institutions'' sources of funding through issuance of MBSs.   ·	  Provide new products (ie. MBB & MBS) for local currency long-term investors and savings institutions.   ·	  Improve financial sector liquidity through securitization of mortgage portfolios.   ·	  Improve the affordability of housing and lower the cost of mortgage loans by making longer-term funding available, and by enhancing the liquidity of mortgage assets.   ·	  Promote competition in a primary mortgage market which has been dominated by H&CB for the last three decades as to help develop the primary mortgage market in Korea by improving the efficiency of loan origination and standardization of loan files, loan file documents and mortgage loan quality.   ·	  Improve the quality and efficiency of mortgage loan servicing.      Environmental Category and Issues    	Based on the available information, this is a category C project according to IFC''s environmental and social review procedure. No further environmental review is therefore required.        Date SPI sent to InfoShop     December 6, 1999      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384