Home Pension Subscriptions Surpass 81,000 at End of 2020  

- Revised HF Act leads to sharp 37.5% monthly increase in Home Pension subscriptions last December

  <Owners of homes with an official appraised value of up to KRW 900 million and residential studios now eligible to apply for Home Pension> 

□ Adding over 10,000 new subscriptions last year, Home Pension sees its cumulative total of subscriptions rise to 81,206 at the end of 2020. 

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) stated on the 19th that Home Pension added 10,172 new subscriptions last year alone, marking a 14.3% increase in its cumulative subscriptions, from 71,034 at the end of 2019 to 81,206 at the end of 2020. 

This notable increase is partly due to the December 8, 2020, revision to the Korea Housing Finance Corporation Act, which allows owners of higher-value homes and residential studios to join the state-guaranteed reverse mortgage scheme. As a result, 257 owners of homes with an official appraised value of up to KRW 900 million (or KRW 1.2 to 1.3 billion in market value) and residential studios joined Home Pension last December alone, a 37.5%* monthly increase from the previous month. 

  * Three-month trend in new Home Pension subscriptions: 808 (Oct. 2020) → 850 (Nov. 2020) → 1,169 (Dec. 2020)

□ The average Home Pension subscriber is 72.2 years old and receives KRW 1.035 million in monthly payouts. 

According to the breakdown of Home Pension subscribers as of the end of 2020, the average Home Pension subscriber is 72.2 years old and receives KRW 1.035 million in monthly payouts on home equity valued at KRW 307 million, representing a 3.4% and 2.3% increase in average home value and monthly payout amount, respectively, from the end of 2019.

  * At the end of 2019, the average Home Pension subscriber was 72.2 years old and received KRW 1.012 million in monthly payouts on a home valued at KRW 297 million. 

□ The revised Act introduces seizure prevention passbooks and the Trust-Type Home Pension scheme, ensuring stronger payment protection.

Under the revised Act, HF will introduce seizure prevention passbooks for Home Pension subscribers this June, ensuring that, of the total monthly payout, the minimum cost of living set forth in the Civil Execution Act is transferred into a seizure prevention passbook. It will also launch the Trust-Type Home Pension scheme. Under the scheme, the rights to Home Pension payments automatically go to a surviving spouse, supporting subscriber spouses to enjoy a financially stable retirement. All of this is part of HF’s efforts for stronger payment protection. Moreover, the Trust-Type scheme is available to owners of single- or multi-unit housing with parts rented out and allows existing Home Pension subscribers to rent part of their house, helping seniors create an additional stream of income from their home. 

□ An HF official said, “Although we had much difficulty in carrying out our Home Pension consultation services last year due to social distancing and other COVID-related constraints, we added over 10,000 new Home Pension subscribers. This shows growing public interest in our Home Pension scheme. Anyone interested in Home Pension can readily get free consultation and subscription assistance if they contact their nearest HF branch office or our call center (1688-8114).”