JTYK subscription in the first half rose 24% from a year earlier
- Date 2015-07-13
- Views 643
JTYK subscription in the first half rose 24% from a year earlier
- It is expected that the increase in JTYK subscription will boost consumption in seniors -
The number of those who have subscribed to the JooTaekYeonKeum (JTYK) reverse mortgage loan in the first
half of 2015 increased 24% from the same period last year. Research shows that an increase in JTYK subscription
contributes to stimulating consumption in seniors.
JTYK subscription in this first half rose 24% from the previous year
Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 13th that 3,065 homeowners
have joined its JooTaekYeonKeum (JTYK) reverse mortgage loan in the first half of 2015, a 24% increase from
the same period last year (2,472 subscriptions). This June alone, 551 homeowners subscribed to the loan program,
a 39.8% increase from a year earlier (394 subscriptions). As a result, the cumulative number of JTYK subscribers
since its launch in July 2007 has reached 25,699.
The increase in JTYK subscription helps boost consumption in the elderly
According to a survey of JTYK demands for the period from 2012 to 2014, seniors who have subscribed to the
JTYK reverse mortgage loan were found to spend 80% of each 1 million won increase in their income, while
those who have earned incomes only spend 68%.
This shows that JTYK has become a reliable source of income for older citizens and has consequently led them
to consume more goods and services.
In regards to this, HF Research Fellow Koh Je-Hun stated, "These seniors with a monthly income from the JTYK
program regard it as a more stable source of income than an earned income and therefore are more active in spending
money. In this context, JTYK needs to be used as one of the major solutions to stimulate spending by seniors.”
He also added, “More seniors are considering JTYK subscription to improve their sustainable retirement spending levels.”
In the first half of 2015, the average home value of JTYK subscribers has been 281 million won ,and their average
monthly JTYK income is 990 thousand won.
The average value of homes owned by JTYK subscribers in the first half this year stands at 281 million won, a 2.9%
increase from 273 million won in the previous year.
By region, their average home value showed a 2.6% increase in the Seoul metropolitan area (312 million won →
320 million won) and a 6.1% increase in other regions (179 million won → 190 million won) during the same period,
indicating that the value of collateralized homes in non-metropolitan areas showed a stronger upward trend.
Also, the average amount of monthly JTYK disbursements continued its upward trajectory, from ▲ 910 thousand won
in 2013 to ▲ 940 thousand won in 2014 and ▲ 990 thousand won in the first half of 2015.
