〃 Monthly Pension Benefits from the JTYK Program to Decline 2.8% on Average Starting

with Those Applying for the JTYK Loan in February ”

- Pension benefits adjusted to reflect downward stabilization of house prices and rising life expectancy

- If a 70-year-old citizen obtains a JTYK loan for a KRW 300 million house, the monthly pension benefit drops from KRW 1.03 million to KRW 1 million

Beginning February 1, the monthly pension benefits to new applicants of the JTYK loan will decrease 2.8%. The monthly pension benefits will not decline for current pensioners and new JTYK applicants taking out loans before then.

KHFC finalized the adjustments to key variables, including the house price appreciation rate, based on the findings of an outsourced study done in December 2012 by reflecting the downward stabilization of house prices and the rise in life expectancy. Subsequent actions such as IT development were completed in January 2013, and the adjusted monthly pension benefits will go into effect to new applicants beginning February.

According to the new standards, the decrement in monthly pension benefits varies depending on the age of borrowers and pension types. For a detached house, the fixed pension benefit decreases 2.8% (1.1%~3.9%) on average. The decrement is smaller for younger borrowers.

“This is the second adjustment to the monthly pension benefit for JTYK loan borrowers. The first one took place last year. Those who plan to join the JTYK loan program should do so by the end of January,” said an official at KHFC.