JTYK Surpasses 50,000 New Subscriptions

- JTYK added 10,386 subscriptions last year, its largest increase on record

JooTaekYeonKeum has recorded 50,000 subscriptions in the 10 years and five months since its launch in July 2007.  
  * JooTaekYeonKeum (JTYK) is a state-guaranteed reverse mortgage loan in which senior citizens 60 years of age or older provide their owned home as collateral and receive living expenses for their post-retirement life in the form of monthly pension benefits either for the rest of their life or for a certain period of time.

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced that it approved a JTYK application filed by a senior couple living in Nam-gu, Busan, Ok Chi-Dong (age 73) and Kim Myung-Soon (age 70), on January 9, 2018, accepting them as JTYK's 50,000th subscriber. The subscriber couple decided to take out the JTYK reverse mortgage as they were impressed by the fact that they can receive monthly income for life while staying in their home and leave the remaining home value, if any, to their heirs after their death. This decision gave them the good fortune of becoming the 50,000th JTYK subscriber. HF invited them to express its thanks and awarded them a cash prize of KRW 1,000,000 as a token of appreciation <see the image below>.

Last year, JTYK had the largest increase in annual subscriptions since its launch 

Last year, JTYK earned 10,386 new subscribers, a record-high year-on-year increase since its launch in 2007. This subscription figure is slightly more than 20 times larger than that of 2007 (515 subscriptions). As of the end of 2017, the number of cumulative JTYK subscribers since its launch in July 2007 stood at 49,815.

JTYK sees its first Ulleung-do subscriber 

As JTYK has gained increasing recognition, it secured its first subscriber from Ulleung-do since its launch. The subscriber is a 78-year-old Ulleung-do resident with a house valued at KRW 136 million. He joined the JTYK scheme last November and receives KRW 680,000 in monthly payments (under JTYK's High-Low Option).

The average age of JTYK subscribers is 71.9, and the value of their homes mortgaged and the amount of their monthly payments average KRW 287 million and KRW 989,000, respectively

Recently, a study was conducted to find out more about the characteristics of those who have joined the JTYK scheme from its launch in July 2007 to the end of last December. According to the study, the average age of JTYK subscribers is 71.9 (the age of the younger spouse was used for couples with age gaps). The study also found that, on average, they have a home worth KRW 287 million mortgaged and receive KRW 989,000 in monthly payments. This amount reaches 77% of the median earned income of elderly households aged 60 and over (KRW 1.27 million)**.
   ** Source: The Recent Average Monthly Income and Expenditure by Age of Household Head (2017 Q3) released by KOSIS, Statistics Korea
 
An HF official said, “There has been an increasing preference among seniors to lead a financially independent retirement life, not relying on their children, as well as a growing change in perceptions towards housing inheritance among seniors and their children. This will keep driving up the demand for JTYK in the future.” He stressed, “In 2018, we will continue our various product development efforts, such as developing new products to ease the JTYK subscription requirements and enhance income and housing stability for the elderly.”

<Image Description>
HF CEO Lee Jung-Hwan (left) posed for a photo with the 50,000th subscriber couple, Ok Chi-Dong (middle) and Kim Myung-Soon, at the HF headquarters in Munhyeongeumyung-ro, Busan, on the 16th.