JTYK welcomes its 20,000th subscriber

HF reaches 20,000 subscribers in seven years since JTYK’s launch

The number of subscribers to the JooTaekYeonKeum* reverse mortgage loan reached 20,000—in seven years since the scheme’s launch in July 2007.
   * JTYK is a state-guaranteed reverse mortgage loan in which senior citizens aged 60 or above provide their owned homes as collateral and receive living expenses for their post-retirement life in the form of monthly pension benefits either for the rest of their life or for a certain period of time.

Korea Housing Finance Corporation (HF) announced on the 26th that Kim Gyeongja, an 86-year-old woman living in Yongin, Gyeonggi Province, became the 20,000th subscriber to JTYK as her application obtained final approval on the 25th. [See attached photo]

“I joined JTYK because both my husband and I can receive pension benefits for the rest of our livese while staying in our home. I also found the scheme trustworthy as the government guarantees the payment of benefits,” said Kim. “Being the 20,000th subscriber to this amazing product means a lot, and I feel happy.”

HF offered one million Korean won in prize money to Kim as the 20,000th subscriber. The 19,999th and 20,001st subscribers also received 500,000 Korean won each.

Held together with this prize event was a contest asking the date when the 20,000th subscriber would join JTYK. Out of 9,139 participants, 100 of those who got the date right will be chosen by drawing to win a mobile gift certificate (equivalent to 10,000 Korean won). Plus, souvenirs worth 50,000 Korean won will be given by drawing to 100 people joining the scheme by the end of this month. More information can be found on HF’s official website.

JTYK: 980,000 Korean won received in monthly benefits from housing worth 298 million Korean won on average

An analysis of JTYK subscribers from its launch (July 2007) through the month of the 20,000th subscription (as of June 20th) shows that the average JTYK subscriber is 72 years old, with the age group of 70-74 accounting for the largest share of 27.2% (or 5,433 subscribers). Of the subscribers, 60.3% were married couples (2,042), followed by single women (32.8%; 6,535) and single men (7.0%; 1,387).

The amount of monthly benefits was 980,000 Korean won on average, with “0.5-1 million Korean won” taking up the largest share of 41.7% (8,317 subscribers).

The average housing price of subscribers stood at 278.44 million Korean won. Of the subscribed homes, 30.5% or 6,084 were priced at 100-200 million Korean won; 94.3% of the subscribers had housing worth 600 million Korean won or less. Korean standard-sized or smaller homes accounted for 77.2%.

“JTYK is an optimal policy finance product in the face of falling housing prices and the growing average life expectancy,” explained one HF official. “The number of JTYK subscribers will continue to go up in the future.”

Photo: On the 26th, HF held a ceremony to celebrate the 20,000th subscriber to JTYK at its head office in Sejong-daero, Seoul. The 20,000th subscriber, Kim Gyeongja, and HF’s acting president Kim Jaecheon (right) pose for a commemorative photograph. JTYK welcomes the 20,000th subscriber in seven years since its launch in July 2007.