KHFC grants reduction in late guarantee fees

Benefit given to 24,000 people in arrears of guarantee fee payment

Approximately 24,000 people who had borrowed a housing loan like a jeonse loan with a certificate of guarantee issued by the Korea Housing Finance Corporation (KHFC, CEO Joo-jae Lim) and who were in arrears of guarantee fee payment benefited from a special reduction in guarantee fees.    

According to a statement released by KHFC on April 13, 2011, the corporation had launched a special campaign to grant temporary reduction in overdue or additional guarantee fees. Organized for three months from December 2010 to March 2011, the campaign was designed to relieve the financial burden faced by medium-to-low income people in the face of an economic recession. 

During this special reduction period, borrowers in arrears of guarantee fee payment who pay unpaid guarantee fees at their lending institution could benefit from an exemption of ▲ the full amount of late fees (19 percent of the regular guarantee fee) arising from late payment of guarantee fees and of ▲ additional guarantee fees (0.5 percent of outstanding guaranteed balance) accrued upon expiry of the term of guarantee.  

A KHFC official said, ″Of 33,000 people who took out a loan to purchase a home or to pay jeonse rental deposit or installments using a certificate of guarantee issued by KHFC and who, for unavoidable reasons, were behind in their guarantee fee payment, 24,000 people benefited from the special reduction.″ He added, ″Those who received a special reduction can continue normal guarantee transactions. We hope that the total reduction of KRW150 million helped somewhat relieve the financial burden faced by those who are experiencing economic hardship.″