JTYK Hits Record Subscription in the First Half of 2017

- 5,942 new subscribers added in the the first half of 2017, a 11.8% year-on-year increase
- Total subscriptions reaching 45,371 since its launch
- Average home value and monthly payout amounting to 286 ml won and 984,000 won
- Marking its 10th anniversary, JTYK publishes a collection of essays written by its customers 

Celebrating its 10th anniversary this year, JooTaekYeonKeum* subscriptions have now surpassed 45,300, firmly establishing itself as a reliable option for retirement security among Korean senior citizens.
   * JooTaekYeonKeum (JTYK) is a state-guaranteed reverse mortgage loan in which senior citizens 60 years of age or older provide their owned home as collateral and receive living expenses for their post-retirement life in the form of monthly pension benefits either for the rest of their life or for a certain period of time.

New JTYK subscription in the the first half of 2017 increased 11.8% year-on-year

   Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) stated on July 25, 2017, that 5,942 seniors newly subscribed to its JooTaekYeonKeum (JTYK) reverse mortgage loan in the first half of the year. The figure is an all-time high compared to any first half since its launch and also an 11.8% increase from the same period a year earlier (5,317). This increase has brought the total JTYK subscriptions to 45,371 as of the end of this June.     

   Indeed, JTYK subscription in the first six months of the last three years has been on a steady rise from 3,065 in 2015 to 5,317 in 2016 and 5,942 in 2017. 

   In particular, the rate of subscription increase has accelerated as well. It took five years for JTYK to reach its 10,000th subscriber (August 2012). Then, it took 22 more months to reach its 20,000th subscriber (June 2014), and 20 months after then to reach its 30,000th subscriber (February 2016). From that point, it only took 11 months for the reverse mortgage program to add another 10,000 subscribers (January 2017).

JTYK subscription rose thanks to eased eligibility standards and growing awareness

   HF has made continuous efforts to improve the reverse mortgage program by easing the existing eligibility requirements, such as  lowering the eligibility age and accepting a wider range of property types as collateral, as well as by offering more payout options. According to HF's 2016 survey of JTYK demand, 90.1% of senior households 55 years of age or older are aware of JTYK. In particular, the percentage of those aware of JTYK in the 60-84 age group went up from 79.5% to 88.3% from a year earlier.

On average, a 71.8-year old JTYK subscriber with a home worth 286 million won receives a monthly JTYK payout of 984,000 won 

 
   To break down those who have subscribed to the JTYK program from its launch until the end of this June, the average age of subscribers is 71.8 years. By age, those in their 70s account for 47.3% of the total subscribers, followed by those in their 60s accounting for 36.5%. By household type, 61.2% of the total JTYK subscribers are married couples. Single women and men account for 32.2% and 6.6% of the total subscribers, respectively, revealing that single women take up a larger share than single men in JTYK subscription.  

   At the same time, on averages, homes owned by JTYK subscribers are valued at 286 million won. By value, homes valued from 100 million won to less than 300 million won account for 56.3% of the total homes collateralized, while the share of homes valued from 300 million won to less than 600 million won is 31.9%. By size, homes with a floor space of 85㎡ or less account for 79.2% of the total homes collateralized. By type, apartment units account for the largest share (84.1%) of the homes collateralized.  

   The average amount of JTYK monthly payouts stands at 984,000 won. By amount, 62.7% of the total subscribers receive less than one million won per month, while 30.1% receive one million won to less than two million won. Of the total subscribers, 7.2% receive more than two million won each month. By payment option, 99% of the total subscribers opted for the tenure payment option. Those who have chosen the fixed payment option account for the largest share (72.8%) of the total subscribers.

Celebrating its 10th anniversary, JTYK publishes a collection of personal essays and unveils a promotional cartoon

   This year marks the 10th anniversary of the JTYK program. To celebrate the anniversary, HF is planning to invite its subscribers to participate in an essay contest entitled “JTYK Essay Contest” and publish a collection of selected essays. In addition, it will also make and publish a promotional cartoon to help the general public better understand the JTYK program in an easy and fun way.  

   An HF official said,“The JTYK program, which celebrates its 10th anniversary this year, has established itself as a reliable retirement option for senior citizens. We will continue to improve the program and further promote it to the public.”