Explanation on the Feb. 23, 2016 Segye Daily article
- Date 2016-02-24
- Views 567
< Report by Segye Daily >
□ In its February 23, 2016 article entitled 「‘Relief Loan’ benefits high-income earners only」, the Segye Daily
reported as follows:
ㅇ In terms of the early termination of the Relief Loan by income groups, 67% of the volume of the Relief Loan
taken out by those with less than KRW 50 million in annual income is terminated early (75.1% of those users),
and,
ㅇ It means that these low-income earners largely exit the Relief Loan due to the heavy burden of principal
repayment after their transition to the Relief Loan.
< HF Explanation >
□ As of the end of December 2015, the rate of exit by Relief Loan users stands at 2.6% (in terms of prepayment
volume), which is much lower than that (6.0%) of other public-fund mortgage loans such as Bogeumjari Loan.
ㅇ The loan default rate among Relief Loan users is 0.03% (KRW 8.4 BN), which is extremely low compared with
other mortgage loans.
* As of the end of 2015, the loan delinquency rate of mortgage loans offered by commercial banks stands at
0.27% and that of HF public-fund mortgage loan is 0.41%.
□ In terms of the exit rate of the Relief Loan by income groups, those with less than KRW 20 million in annual
income make up 2.9% of early termination cases, which is not a meaningful difference from 2.4%, the exit rate
of those with KRW 50 to 80 million in annual income.
ㅇ Moreover, the exit rate of Relief Loan users with less than KRW 20 million in annual income stands at 2.9%,
which is 50% lower than that of other public-fund mortgage users (6.0%). This shows that the exit rate of low-
income Relief Loan users is not higher than that of users with higher incomes.
□ The reason why the figure in question was calculated to be 67% (75.1% in terms of early termination cases):
ㅇ The Relief Loan users with less than KRW 50 million in annual income make up 61.4% (KRW 19.4 trillion, or
71.8% of the total Relief Loan cases) of the total loan volume, which happens to be similar to the early
termination percentage of this user group.
□ According to a study on the causes of early termination of the Relief Loan, most (around 81%) of those who
have exited the loan cited their purchase of a home.
ㅇ The number of those exiting the Relief Loan was found to be not high
.
□ In its February 23, 2016 article entitled 「‘Relief Loan’ benefits high-income earners only」, the Segye Daily
reported as follows:
ㅇ In terms of the early termination of the Relief Loan by income groups, 67% of the volume of the Relief Loan
taken out by those with less than KRW 50 million in annual income is terminated early (75.1% of those users),
and,
ㅇ It means that these low-income earners largely exit the Relief Loan due to the heavy burden of principal
repayment after their transition to the Relief Loan.
< HF Explanation >
□ As of the end of December 2015, the rate of exit by Relief Loan users stands at 2.6% (in terms of prepayment
volume), which is much lower than that (6.0%) of other public-fund mortgage loans such as Bogeumjari Loan.
ㅇ The loan default rate among Relief Loan users is 0.03% (KRW 8.4 BN), which is extremely low compared with
other mortgage loans.
* As of the end of 2015, the loan delinquency rate of mortgage loans offered by commercial banks stands at
0.27% and that of HF public-fund mortgage loan is 0.41%.
□ In terms of the exit rate of the Relief Loan by income groups, those with less than KRW 20 million in annual
income make up 2.9% of early termination cases, which is not a meaningful difference from 2.4%, the exit rate
of those with KRW 50 to 80 million in annual income.
ㅇ Moreover, the exit rate of Relief Loan users with less than KRW 20 million in annual income stands at 2.9%,
which is 50% lower than that of other public-fund mortgage users (6.0%). This shows that the exit rate of low-
income Relief Loan users is not higher than that of users with higher incomes.
□ The reason why the figure in question was calculated to be 67% (75.1% in terms of early termination cases):
ㅇ The Relief Loan users with less than KRW 50 million in annual income make up 61.4% (KRW 19.4 trillion, or
71.8% of the total Relief Loan cases) of the total loan volume, which happens to be similar to the early
termination percentage of this user group.
□ According to a study on the causes of early termination of the Relief Loan, most (around 81%) of those who
have exited the loan cited their purchase of a home.
ㅇ The number of those exiting the Relief Loan was found to be not high
.
< Status of Early Relief Loan Terminations by Income Group>
(as of the end of 2015) (unit: case, KRW 100MN)
| Annual Income Bracket | Total Loan (A) | Prepayment (B) | Prepayment (B/A) | |||
| No. of Cases | Amount | No. of Cases | Amount | No. of Cases | Amount | |
| Less than KRW 20MN | 131,284 | 84,125 | 4,264 | 2,415 | 3.2 | 2.9 |
| KRW 20MN to 50MN | 103,419 | 110,240 | 3,378 | 3,006 | 3.3 | 2.7 |
| KRW 50MN～8OMN | 60,613 | 74,332 | 1,714 | 1,748 | 2.8 | 2.4 |
| KRW 80MN or more | 31,778 | 47,888 | 816 | 975 | 2.6 | 2.0 |
| Total | 327,094 | 316,584 | 10,172 | 8,144 | 3.1 | 2.6 |