- Measures to reduce delay compensation charges on overdue repayments and to substantially lower the burden of joint liability

Korea Housing Finance Corporation (KHFC, CEO Joo-jae Lim) will launch special measures to reduce financial obligation for low-income people and small- and medium-sized builders for eight months from April 13, 2010 to December 23, 2010.   

The measures are in addition to other regular measures that KHFC is operating to reduce the burden of financial obligations, such as allowance of long-term repayment in installments, reduction of overdue interests, and partial reduction of principal for joint sureties. Aimed at relieving the financial obligations of low-income people and small- and medium-sized builders, the additional measures will include exemption of delay compensation charges on overdue repayments and reduction of excessive joint liability on small- and medium-sized builders.  

By writing off 1.6 billion won in delay compensation charges on overdue repayments (about 163,000 won per person), the measures will likely benefit 9,800 low-income people who are faithfully repaying their loans but have incurred charges on delays due to difficult living conditions 

Also, small- and medium-sized builders who have the intent to repay their loans but are facing difficulties doing so due to an excessive joint liability can, if meeting certain requirements, benefit from substantial reduction in their burden by dividing the joint liability by the “number of joint sureties + 1” in lieu of being subject to the principle of equal sharing of obligation with the debtor,

“KHFC desires to help small- and medium-sized builders recover as well as stabilize the life of low-income people and contribute to job creation by actively helping them repay their loans. We will continue to implement these special measures to reduce their debt obligations,” said an KHFC official.