"Sharp cut in guarantee fees for low-income people"

- 130,000 low-income and multi-cultural households benefit from the cut-

The Korea Housing Finance Corporation (HF) announced on November 21 that it would cut guarantee fees for low-income and multi-cultural households among customers who are already using or plan to use mortgages including loans for "jeonse" (returnable lump-sum rental deposit) by using the housing guarantee.

HF cuts a 0.1 percentage point of guarantee fees a year to ease the financial burden of ▲ low-income households with an annual income of KRW 25 million or less, ▲ multi-cultural households where a spouse is a foreigner or naturalized person and ▲ households with disabled family members where even just one member is subject to an issuance of disabled person certificate.

This cut in guarantee fees is applied to guarantees for ▲ "jeonse", ▲ home purchasing and ▲ home remodeling. As a result, about 130,000 households are expected to enjoy the cost cut worth around KRW 2.5 billion.

A HF official said, "The latest cut will be applied to existing customers who extend the term of loan as well as new applicants."