Supply of Jeonse Loan Guarantee Soars

  According to KHFC, in this year to October 25, the supply of jeonse loan guarantees provided through the Housing Finance Credit Guarantee Fund (HFCGF) for households not owning homes totalled KRW2.0124 trillion.

  This was already higher than the figure for credit guarantees supplied for the entire year in 2006 (KRW1.7319 trillion).

   It is first time in the three years since 2003 that the supply of jeonse loan guarantees from HFCGF has exceeded KRW2 trillion.

   The number of jeonse loan guarantee users amounts to 109,867 as of October 25, which is higher than the 102,200 users last year. This increase in jeonse loan guarantees may be attributable to the continued rise of jeonse prices in the capital region this year.

  In addition, with the introduction of an upper ceiling on pre-sell prices and a points system for apartment subscriptions, potential buyers are postponing the purchase of homes and, thus, demand for jeonse has increased further.