KHFC to Provide Debt Reduction and Exemption from the 20^th

Korea Housing Finance Corporation (CEO Joo-jae Lim) will provide debt reduction and exemption from April 20 to facilitate the credit recovery of those debtors who obtained a loan with the housing finance credit guarantee fund but were not able to make timely repayment.

Each year, KHFC launches a temporary debt reduction and exemption campaign for a designated period, but decided to switch to a full time system after the revision of the relevant regulation.

Accordingly, some 170,000 debtors comprised of low-income families and small to medium sized construction firms will be able to recuperate their credit when they wish by taking advantage of the debt exemption or extension.

Through this system, KHFC will allow 8 years for individuals and 15 years for companies to make repayments in installments over a prolonged period of time while providing benefits such as △ reducing or exempting the interest rate for delayed payment after the date of subrogation, or △ allowing partial exemption of the principal for the joint guarantor.

An official at KHFC said, “Some 6,100 people recovered their credit during the 8-month long special exemption campaign last year. This permanent system is expected to increase the credit recovery by at least 10%.”