□ The Korea Housing Finance Corporation(CEO: Chung Hong Shik) will raise the mortgage limit to 300 million won effective January 31 following the promulgation of the amended KHFC Act on January 27. o The KHFC Act was amended by the National Assembly on December 29, 2004, and it raises the maximum allowable limit on a mortgage from 200 million won to 300 million won. o KHFC adopted the higher limit through resolution of the Housing Finance Operation Committee, and the new limit will be effective on January 31 on KHFC mortgages handled by 21 finance institutions nationwide. □ The higher limit on KHFC mortgages should boost the housing market as it will make more funds available to home buyers and help stabilize the financial market by converting short-term equity loans into long-term loans. o The maximum price of a house that can be bought with a KHFC mortgage will rise to 430 million won from 290 million won. o The average price of a 35-pyeong apartment in 10 districts in Seoul is 420 million won. The previous mortgage limit was at least 90 million too low for most home buyers to afford an apartment in these districts. Now, a home buyer will be able to purchase an apartment with a KHFC mortgage and a down payment of only 130 million won. □ The housing finance market should expand greatly as the general public becomes more aware of the benefits of mortgages to buy homes, with the exception of upscale homes.