HF Inks MOU with the Special Committee on Income-Led Growth and BNK for JTYK Promotion

- Combining efforts to ensure a stable retirement for older adults in Busan, Ulsan, and Gyeongnam Province 

- Committee Chair Hong Jang-Pyo expects JTYK to boost household income and the local economy

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) stated on June 18, 2020, that it signed an MOU with the Presidential Special Committee on Income-Led Growth (Chairperson Hong Jang-Pyo) and BNK Financial Group (Chairperson Kim Ji-Wan) for the promotion of JooTaekYeonKeum (JTYK) to ensure a financially stable retirement for older adults. 

JTYK is a reverse mortgage loan product that enables older adults aged 55 years and older to provide their owned home as collateral and receive living expenses for their post-retirement life. It has established its position as the most popular tool for a stable income flow after retirement. 

This MOU came after HF, the Special Committee, and BNK Financial Group agreed on the need to promote JTYK to revitalize the economies of rapidly aging Busan, Ulsan, and Gyeongnam Province and support older citizens experiencing greater financial difficulties due to the ongoing COVID-19 pandemic. 

Under the MOU, the Special Committee will develop policies to promote JTYK, while HF will work to improve the current JTYK scheme. HF will also work with BNK Financial Group (parent company of Busan Bank and Kyongnam Bank), which will develop and run a JTYK promotion plan and related training programs. The financial group will offer a special desk and trained personnel dedicated to JTYK customers at its branches, improving their access and convenience to JTYK services.

Hong Jang-Pyo, Chairperson of the Special Committee on Income-Led Growth, said, “JTYK is well positioned as the representative financial tool that ensures a secure retirement for financially vulnerable older citizens. We expect that this MOU will encourage more older adults in Busan, Ulsan, and Gyeongnam Province to join the JTYK program, not only ensuring a financially stable retirement for them but also stimulating the local economies.”

Kim Ji-Wan, Chairperson of BNK Financial Group, said, “Capitalizing on the vast branch presence of Busan Bank and Kyongnam Bank, the two leading banks in Busan, Ulsan, and Gyeongnam Province, we will open a desk solely dedicated to JTYK at each bank branch and assist JTYK customers with their paperwork. This means greater convenience to those in need of JTYK.  As the biggest banking institution in Busan, Ulsan, and Gyeongnam Province, we will play a leading role in promoting JTYK.”

HF CEO Lee Jung-Hwan said, “In response to the rapidly aging population in our local communities, HF has lowered the minimum JTYK age requirement to 55 years and launched the Preferential Type JTYK that offers up to 20% more in monthly payout amounts than standard JTYK products, serving as a reliable safeguard for a secure retirement. We are planning further systematic improvements to allow more senior citizens to enjoy the benefits of our JTYK program.”