“Providing support to low-income families to revive the economy”

- New Year’s Address by the CEO of Korea Housing Finance Corporation -

In 2009, Korea Housing Finance Corporation announced that it will intensify its support for low-income families by providing more long-term mortgage loans at a fixed rate and housing credit guarantees in order to revive the economy.

CEO Lim emphasized KHFC’s focus on enhancing its role in the securitization business. “KHFC is committed to developing new customized products to increase the supply of Bogeumjari loans and differentiating the interest rate in accordance with income levels and credit ratings, thereby minimizing financing cost for users,” he said.

As the lone securitization expert institution in Korea, CEO Lim asserted that “KHFC will provide adequate liquidity to financial institutions through the securitization of private assets by way of direct exchange of mortgage loans and MBS, which will contribute to enhancing the asset quality of banks.” He added that, “We will promote the issuance of overseas MBS to fulfill our role as the intermediary to foreign capital and governmental financing.”

He went on to confirm KHFC’s resolve to strengthen housing credit guarantees to better sustain housing stability for low-income households. He said that “to help these households that are facing difficulties due to the decrease in housing price and income, we will focus more on providing guarantees for mortgage loans. Since the guarantee limit per person has been increased to KRW 200 million, we will develop new products and instill improvements so that non-home owners can access the practical help they need.”

CEO Lim stressed that KHFC will focus on △ strengthening the foundation of JooTaekYeonkeum (reverse mortgage), △ expanding tuition loans for low income families, △ promoting creativity, efficiency and priority on competition within the organization, and △ managing the enterprise-wide risks as well as profits and losses. Finally, he wished that “marking the year of the cow, a symbol of diligence, integrity, patience and responsibility, we will dedicate ourselves to successfully meeting our goals.”