- JTYK eliminates the existing incremental and decremental payment plan options and allows switching
between payment plan options -
 

□ HF adjusts its JTYK monthly payments from February in response to changes in house prices and other key
    variables
 
    Those who apply for the JooTaekYeonKeum (JTYK) reverse mortgage program from February 1, 2016, onwards
    will receive an adjusted amount of JTYK monthly payments. Existing JTYK subscribers and retirees who 
    complete their JTYK subscription by the end of this month, however, can receive the same amount of monthly 
    payments as before.
 
   Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on January 22, 2016, that it obtained
   approval from the Housing Finance Steering Committee on December 18, 2015, to adjust key variables that
   determine its reverse mortgage payouts after expert consultation on its proposed changes to the variables, and
   that it will apply the adjustment starting from February 2016.
 
   During the period of expert consultation, HF commissioned independent expert advisory groups to recalculate*
   key factors that decide its reverse mortgage monthly payments, such as the rate of increase in home prices
   and life expectancy. The adjustment will lower the monthly payments for those in their 60s and 70s with an
   ordinary home mortgaged for a fixed payment plan option by 0.1% and 1.4%, respectively. For those
   mortgaging their private senior residences, the amount of monthly payments for those in the same age groups
   will go up on average by 2.3% and 0.6% each.

   * According to Article 9 of the Korea Housing Finance Corporation Act, the key variables are subject to
     recalculation at least once a year and their recalculated values should be reflected in determining HF's reverse
     mortgage monthly payments.
 
□ Existing JTYK subscribers and new subscribers up until the end of January will receive the current amount of
    monthly payments
 
   The adjustment will apply to those who subscribe to the JTYK program from February 2016 onwards. The
   existing subscribers and new subscribers up until the end of January will receive the monthly payment
   predetermined at the time of their subscription.
 
<Changes to JTYK Monthly Payments>
 
(ordinary homes, fixed monthly lifetime payout, unit: KRW 1,000)

Home Price Age		100,000			300,000			500,000
		Before	After	Change	Before	After	Change	Before	After	Change
Ordinary Home	60	227	227	-	683	682	▽1	1,138	1,137	▽1
	70	329	324	▽5	986	972	▽14	1,644	1,621	▽23
Senior Residence	60	174	177	3	521	534	13	869	889	20
	70	269	271	2	807	811	4	1,345	1,352	7