Jeonse Loan Guarantees Also Provided to Those

in Credit Recovery Assistance

Jeonse loans will now also be made available to those in the credit recovery assistance program, who have difficulty obtaining loans from financial institutions.

On November 17, KHFC announced that it plans to offer special guarantee support for those denied access to financial services in order to help low-income earners stabilize their housing situation.

KHFC will provide those in the credit recovery assistance program with guarantees for jeonse loans up to KRW 10 million or 70% of jeonse security deposits, whichever amount is less, regardless of their personal credit ratings. However, guarantees will be provided only to those who have paid back at least 24 installments of their debts under a debt restructuring plan offered by a credit recovery agency.

An official at KHFC said, “Jeonse prices continue to be volatile, and the economic recession is exacerbating the financial difficulties of low-income households. We introduced the special guarantee to offer preferential assistance to those who are virtually denied loans from financial institutions because of poor credit ratings."