Properties Collateralized for JTYK Can Be Leased from Second-half This Year 

- JTYK subscribers can create an additional stream of income by leasing their collateralized property
- HF launches guarantee products tailored to the needs of social enterprises and social welfare workers
- HF is set to offer earthquake- and fire-resistant properties a broader range of guarantee services at discounted fees
- HF makes another cut to default interest rates, easing the financial burden on those defaulting on their Bogeumjari Loan

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) stated that it is going to have properties collateralized for the JTYK reverse mortgage scheme available for lease from the second half of the year. It added that it will launch a Jeonse guarantee program tailored to the needs of social enterprises and social welfare workers. It also revealed its plan to expand its guarantee support for properties with safety features, such as earthquake- and fire-resistant ones. In addition, it will make another cut to default interest rates for Bogeumjari Loan borrowers. 

Properties collateralized for the JTYK scheme can be put up for lease from as early as the second half of the year
 
HF CEO Lee Jung-Hwan said at the press conference held at the Press Center Korea in Taepyeong-ro, Seoul, on the 14th in celebration of HF's 14th anniversary, "We will allow JTYK subscribers to put their collateralized property up for lease from as early as the second half of the year, strengthening our support to ensure that the elderly lead a stable retirement life." CEO Lee stressed, "Soon we will help senior JTYK subscribers have their property available for lease in the case that they cannot live there because they move to their children's place under their care or enter an elderly care facility. In such cases, they will have lease income in addition to their monthly JTYK payments."
 
Furthermore, HF will introduce a trust-type JTYK scheme, guaranteeing a stream of stable income and housing for the spouse of a JTYK subscriber after the subscriber's death. 
 
HF launches a Jeonse guarantee program to cater to the needs of social enterprises and social welfare workers

HF is set to launch a Jeonse guarantee program customized specifically to social enterprises and social welfare workers. 

Regarding the program, HF CEO Lee said, "As a state-sponsored guarantee provider, we are launching the program to realize social values. As we are currently discussing the program with Korea Social Enterprise Promotion Agency, Korea Association of Social Workers, and the Central Self-Sufficiency Foundation, we will be able to unveil the program in the second half of the year."

HF is also going to focus its efforts to ▲ strengthen its guarantee services for rental homes offered by local governments (including local social enterprises) and ▲ expand its support for the housing stability of those with housing vulnerability through collaboration with local governments and financial institutions.
 
Regarding this, HF CEO Lee said, "We will develop guarantee products to systemize our support for new-type rental housing and the social economy. We will work with local governments and financial institutions to provide loans with low interest rates and guarantees for various housing construction projects, helping social enterprises build affordable rental homes." 

HF offers greater guarantee services for properties with safety features, including earthquake- and fire-resistant ones, at lower guarantee fees 

HF CEO Lee went onto say, "Due to recent earthquakes and fire incidents, the importance of safe housing is growing. Accordingly, we need to strengthen our role as a state-sponsored guarantee provider." He added, "We will conduct an internal review and consider adjusting the current guarantee limit and rate upwards and lowering guarantee fees for properties newly built or renovated with safety features, such as earthquake and fire resistance, that are more rigorous than required by the relevant laws and regulations."

HF makes another cut to default rates for Bogeumjari Loan borrowers

HF plans to make another cut to default rates for Bogeumjari Loan borrowers. The current default rates for Bogeumjari loans remain at 2~4%p annually, which is the lowest level in the financial sector. In line with the government's policy to support borrowers with financial vulnerability and borrowers defaulting on their loans, HF is going to make another cut to the current rates to ease the financial burden on those defaulting on their Bogeumjari Loan, helping them get back on track in their repayment.

It is also going to consider giving borrowers a choice to choose a more favorable debt repayment option through consultation with financial institutions. Currently, in the event of a default, borrowers are required to pay off their debt obligations in the order of expenses, interest, and the principal. If borrowers are given a choice to choose a debt repayment order more favorable to their cash stream, they can pay off their debt either in the existing payment order or in the order of expenses, the principal, and interest.

An HF official said, "We will make efforts to meet the public demand for a minimized default burden by lowering the default rates and improving our default rate calculation system in a reasonable manner."