“ Bogeumjari Lending Reaches New Monthly Record of KRW 2.2626 Trillion in June ”

- 35.8% increase compared to May, 2.5 times increase year-on-year -

- Prime rate loan issuance reaches KRW 787.6 billion, another monthly record -

The Korea Housing Finance Corporation (KHFC) announced on July 8 that the volume of Bogeumjari loans, a major mortgage loan for low-income households, issued in June reached KRW 2.2626 trillion, a 35.8% increase form KRW 1.660 trillion in the previous month and a 145.6% rise from KRW 921.4 billion year-on-year. This is the highest monthly total ever since the launch of Bogeumjari loan in 2004.

Issuance of the prime rate Bogeumjari loan, which is offered at rates 0.5%~1%p lower than the regular interest rate to households with total annual income less than KRW 50 million, reached KRW 787.6 billion, also a monthly record.

According to an official at KHFC, this great rise in Bogeumjari loan issuance may be attributed to its low interest rate of 2.8%, the new real estate market measures announced on April 1, and the expiration of acquisition tax reduction period at the end of June. He went on saying that issuance would revert to the mean in July and August due to the expiration of the acquisition tax reduction period and the onset of the low demand season.