HF Supports Those Discharged from Bankruptcy and Those on Debt Rehabilitation

- HF financial products available when their financial obligations expire

HF makes its financial products available to those who have failed to pay back HF-guaranteed loans on time, including HF-guaranteed Jeonse loans. Up until now, HF products have been made available again to delinquent debtors once they pay back at least the principal and a certain portion of the damages incurred from their failure to pay their loan.

Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) stated on August 31, 2017, that it is now making its financial products* available again to those with expired debt obligations or restructured debt**. This decision came after the government unveiled its policies to help low- and medium-income people build wealth, strengthen financial support for them, and support financially underserved people to stand on their own feet. HF is going to help the financially disadvantaged get their finances back on track by removing debts with expired statutes of limitations***, thereby promoting housing stability.  

    *   Bogeumjari Loan, other HF mortgage loans, HF-guaranteed Jeonse loans, and other HF-guaranteed loans
    **  Those who are discharged of their debt or have paid off their debt on a debt rehabilitation program
    *** Those with their debt statute of limitations expired pursuant to the Commercial Code are no longer held responsible for their debt.

An HF official said, “This decision will allow those with expired debt statutes of limitations to use our Bogeumjari Loan and other long-term, fixed-rate loans and to get covered by our guarantee when they take out a Jeonse loan at a commercial bank. This will, in turn, improve housing stability for the financially vulnerable.”

Bogeumjari Loans can be taken out at the HF webpage, while HF-guaranteed Jeonse loans are available at 16 commercial banks.