KHFC offers 985.1 billion Korean won in credit guarantees for deposit-based rentals in November

 - The amount of credit guarantees dropped 7.1% month-on-month but increased 11.6% year-on-year -

The Korea Housing Finance Corporation (KHFC) announced on December 5 that the amount and number of credit guarantees for deposit-based rentals—offered last November to low-income non-homeowners via the Housing Finance Credit Guarantee Fund—amounted to 985.1 billion Korean won and 30,460 credit guarantees, respectively.

According to KHFC, the amount of credit guarantees for deposit-based rentals in November 2012 increased 11.6% year-on-year (from 883 billion Korean won to 985.1 billion Korean won), with the number of guarantees also growing 9.1% (from 27,917 to 30,460). The amount of new guarantees increased only slightly by 4.7% (from 672.3 billion Korean won to 703.9 billion Korean won), while that of extended guarantees due to contract renewal or other reasons grew in a relatively considerable proportion of 33.4% (from 210.7 billion Korean won to 281.2 billion Korean won).

When compared on a month-on-month basis, however, the amount of credit guarantees declined by 7.1% (from 1,060.7 billion Korean won to 985.1 billion Korean won) and the number of guarantees by 6.4% (from 32,541 to 30,460). The amount of new guarantees fell 4.4% (from 736.6 billion Korean won to 703.9 billion Korean won), and that of extended guarantees decreased relatively sharply by 13.2% (from 324.1 billion Korean won to 281.2 billion Korean won).

“It seems that the amount of credit guarantees for deposit-based rentals declined month-on-month last November as the fall moving season came to a close,” explained one KHFC official. “Given three-year trends, the demand for credit guarantees for deposit-based rentals will likely continue to decline until February, when the spring moving season begins.”