KHFC increases number of financial institutions handling jeonse housing guarantees

Greater access given to jeonse housing guarantees 

Borrowers will have greater access to jeonse (rental deposit) loans from banks using the guarantee from the Korea Housing Finance Corporation (KHFC, CEO Joo-jae Lim). This comes from KHFC's decision to add Hana Bank to handle the ′guarantee of jeonse loans from banks′ and IBK and Hana Bank to handle the ′guarantee of loans to repay due national housing fund loans.′

Offered since December 24, 2010 to relieve the jeonse crisis, the ′guarantee of jeonse loans from banks′ allows people, including those without any dependents or who are not a head of household, to get a jeonse loan from a bank using the guarantee from KHFC. Applications for KHFC guarantee are handled by six designated banks (IBK, KB, Nonghyup, Shinhan, Woori, and Hana). In this regard, a KHFC official said, ″the guarantee is designed to help people who do not have the means to finance a shortage in their jeonse rental deposit due to their ineligibility for a bank jeonse loan, for example young people in their early years of career or those with an irregular or no income.″

The ′guarantee of loans to repay due loans′ is designed for low-income workers or people with an annual income of KRW30 million or less who have a due jeonse loan from the National Housing Fund. The guarantee allows them to repay their due loan with a bank loan. Applications are handled by five designated banks (IBK, KB, Nonghyup, Woori, and Hana). A KHFC official said, ″The guarantee is designed to help people who are unable to extend their loan so that they don't turn to a high-rate, non-bank loan or default on their loans.″