Korea Housing Finance Corporation (KHFC) is poised to change the structure of the Korean housing finance industry. KHFC is proposing innovative fixed rate long-term loans, which will fulfill an unmet demand among Korean homebuyers, and plans to offer long term Mortgage Backed Securities (MBS) in the bond market. This article provides information on the emerging Korean mortgage market, a framework for establishment of this new Government Sponsored Enterprise (GSE) and characteristics of the KHFC MBS product. First, it presents current conditions of the secondary mortgage market in Korea. Second, it discusses the process and rationale for the establishment of KHFC. And finally, it introduces the KHFC home mortgage loan and the KHFC MBS.