KHFC′s housing credit guarantee balance exceeds KRW20 trillion

KHFC firmly established to support housing stability of medium-to-low income people

The housing finance credit guarantee fund of the Korea Housing Finance Corporation (KHFC, CEO Joo-jae Lim) surpassed KRW20 trillion in total guarantee balance. This is the first time that the guarantee surpassed the 20 trillion mark both since KHFC and the guarantee fund were established in 2004 and 1988, respectively.

KHFC announced on March 11, 2011 that the outstanding balance of its credit guarantees surpassed KRW20 trillion, including KRW10 trillion in jeonse guarantees. This is thought to result from KHFC making new products like jeonse guarantees available, relieving guarantee requirements, and expanding the number of people eligible for guarantees in support of medium-to-low income borrowers.

This year, in particular, KHFC plans to increase the supply of jeonse guarantees for marginalized people who are ineligible for a bank jeonse loan and supply a total of KRW13 trillion in guarantees, including KRW7 trillion in jeonse guarantees, by continuously working to improve guarantee requirements to provide housing finance to medium-to-low income borrowers who are faced with rising jeonse prices and shortage of jeonse homes. In this connection, a KHFC official said, ″Starting with the year 2011 when the outstanding balance of housing credit guarantees surpassed the KRW20 trillion mark for the first time, KHFC will continue to expand its supply of guarantees. Even if the demand for jeonse loans greatly exceeds our initial expectations, the corporation has enough capacity to extend more than the KRW7 trillion initially planned for.″

Since established in 2004, KHFC has supplied a total of KRW48 trillion in housing guarantees to 166,000 households, of which KRW23 trillion was supplied to 106,000 households in jeonse guarantees.