- Grace period for borrowers with unpaid guarantee fees until end of January 2010

A special exemption will be extended to borrowers who have taken out a bank loan using the housing finance credit guarantee fund, and are in arrears on loan repayment.  

The Korea Housing Finance Corporation (KHFC, CEO Joo-jae Lim) announced on October 19, 2009 that it would launch a campaign to extend special exemptions on late fees and penalty guarantee fees for a period of three months from November 2, 2009 to January 31, 2010 as part of an effort to reduce the burden of low-income households during difficult economic times.

During this period, borrowers who pay unpaid guarantee fees up front to their lender bank will be offered a special exemption from the sum of late fees (10% of the regular guarantee fee) resulting from delayed payment of guarantee fees, plus an exemption from penalty guarantee fees (0.5% of the guarantee balance) incurred after the guarantee period has expired (loss of term profit).

However, those who default on interest payments and are deemed a credit risk are excluded from the special exemption until their status is normalized.