Third Anniversary of KHFC Bogeumjari Loan

 March 25 marked the third anniversary of KHFC bogeumjari loans, which were introduced to provide fixed-rated loans with a maturity of over ten years to help citizens become home owners.

 Since their launch on March 25, 2004, KRW 9.6334 trillion in bogeumjari loans has been supplied to 130,780 households throughout Korea to date. The supply of bogeumjari loans is helping citizens become home owners and contributing to the stabilization of the Korean housing finance system.

  When bogeumjari loans were launched, the debt-to-income (DTI) ratio, which evaluates a borrower's income and repayment capacity, was introduced for screening potential borrowers for the first time in Korea. It played a leading role in stabilizing the Korean housing finance market where loans were granted mainly based on collateral value. From March this year, the DTI ratio has been adopted by the majority of financial institutions.

  In addition, by providing bogeumjari loans with a maturity of 10~30 years in the housing finance market that was previously dominated by short-term floating-rate products with a maturity of less than three years, KHFC has contributed significantly to extending the maturity of loan products in the housing finance system, replacing short-term loans as the benchmark product.