KHFC offers 1,060.7 billion Korean won in credit guarantees for deposit-based rentals in October

The amount of credit guarantees expanded 21.3% month-on-month and 18.9% year-on-year

The Korea Housing Finance Corporation (KHFC) announced on November 12 that the amount and number of credit guarantees for deposit-based rentals—offered last October to low-income non-homeowners via the Housing Finance Credit Guarantee Fund—amounted to 1,060.7 billion Korean won and 32,541 credit guarantees, respectively.

According to KHFC, the amount of credit guarantees for deposit-based rentals in October 2012 increased 21.3% year-on-year (from 874.7 billion Korean won to 1,060.7 billion Korean won), with the number of guarantees also growing 24.7% (from 26,102 to 32,541). The amount of new guarantees increased only slightly by 13.8% (from 647.4 billion Korean won to 736.6 billion Korean won), while that of extended guarantees due to contract renewal or other reasons grew by a relatively considerably proportion of 42.6% (from 227.3 billion Korean won to 324.1 billion Korean won).

When compared on a month-on-month basis, the amount of credit guarantees increased by 18.9% (from 892.2 billion Korean won to 1,060.7 billion Korean won) and the number of guarantees by 11.5% (from 29,172 to 32,541). The amount of new guarantees increased 11.6% (from 659.8 billion Korean won to 736.6 billion Korean won), and that of extended guarantees expanded relatively sharply by 39.5% (from 232.4 billion Korean won to 324.1 billion Korean won).

“It appears that the amount of credit guarantees for deposit-based rentals went up dramatically month-on-month in October as fall is the high season for moving,” hinted one KHFC official. “With the fall moving season coming to a close, the demand for new credit guarantees for deposit-based rentals will likely decline, while the amount of extended guarantees will keep on growing with an increase in contract renewals.”