The U.S. Department of Housing & Urban Development (HUD), Ginnie Mae, and the Korea Housing Finance Corporation (KHFC) have jointly signed a memorandum of understanding (MOU) to strengthen international cooperation in housing finance. The MOU underscores a shared commitment to expanding access to affordable housing, cultivating innovation, and supporting residential development.
The agreement marks an important milestone in fostering cross-border investment and collaboration between the United States and South Korea, establishing the framework for identifying and removing barriers to public and private capital flows into housing finance systems, with an emphasis on long-term, stable investment.
KHFC is a state-owned, quasi-governmental institution with a housing finance management committee composed mostly of government-appointed members who formulate KHFC’s operational direction and business plan. With a mandate to support housing markets and economic growth, KHFC plays a key role in housing policy implementation and capital market development in South Korea.
“This partnership reflects HUD’s unwavering commitment to expanding strong, affordable housing opportunities for the American people,” said HUD Secretary Scott Turner. “Working strategically with our South Korean allies, we are expanding the global understanding of American housing finance, while increasing capital flows in the United States, strengthening our domestic capital markets, and unlocking strategies to benefit American borrowers. This agreement signals that, under President Trump’s leadership, our allies are ready and willing to do business in America again.”
The MOU strengthens the relationship between the U.S. housing finance system and Korean institutional investors, who have demonstrated sustained confidence in U.S. fixed-income products as a secure, long-term investment. Current holdings include approximately $37 billion in Agency Mortgage-Backed Securities and Debt, and $122 billion in U.S. Treasury securities, according to the latest data from the Treasury International Capital System.
“Formalizing our partnership with KHFC through this MOU is a meaningful step in addressing housing challenges that extend across borders,” said Joseph Gormley, Principal EVP of Ginnie Mae. “Korean institutions continue to play a significant role in our capital markets, and we look forward to working together to advance a shared understanding of global capital markets and to ensure the strength of our mortgage-backed securities.”
KHFC plays a critical role in South Korea’s housing finance ecosystem, promoting long-term mortgage lending, particularly for low- and middle-income families. South Korea is a top global investor in U.S. government securities—eighth in holdings of agency bonds and 17th in U.S. Treasury securities. KHFC’s participation in this MOU reflects the continued strength of U.S.-Korean economic ties and a shared vision for building resilient housing markets through responsible investment, policy exchange, and innovation.
“It is a great privilege to sign this MOU with Ginnie Mae in the presence of the Secretary of HUD,” said KHFC President and Chief Executive Officer Kyung Hwan Kim. “This partnership marks an important step toward closer collaboration between Korea and the United States in the field of housing finance. By sharing knowledge and best practices, we hope to strengthen the resilience and inclusiveness of our respective housing finance systems. KHFC remains committed to building a more financially sustainable future for all.”
