The Rate of 10-Year Term Bogeumjari Loan as Low as 2.80% from March 6, 2017

□ Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) stated on February 24, 2017, that it will raise the rates for Bogeumjari Loans, its long-term, fixed-rate amortizing mortgage loan by 0.1%p on March 6, 2017.

□ With the raise, the annual rates for the Bogeumjari Loans will go up to 2.80% (10-year term) to 3.15% (30-year term) from the 6th of the following March.

□ However, the previous interest rates will apply for loan applications completed by March 5, and a 0.4%p rate discount is offered for socially disadvantaged households with an annual income of KRW 60 million or less (including single-parent and multicultural families or families with two or more children or disabilities).

□ An HF official explained, "Despite the recent hikes in market rates, we have maintained our Bogeumjari Loan rates at the 2% range in order to ease low- to middle-income families' debt burden. However, as we have suffered a prolonged state of reverse margin for quite a while, we need to raise our rates. However, we tried to minimize our rate increase not to put too much burden on our customers."

□ He went on to say, "Even with this rate increase, our rates still remain about 0.6%p lower than the mortgage rates of commercial banks. We, as a state-run mortgage provider, will consider all market conditions before deciding our mortgage rates in order to reduce the burden of repayment."

※ Reference: Current Bogeumjari Loan Rates