Boguemjari Loans available to victims of rent fraud, allowing them to use residential officetels as collateral

- Amendments to the Special Act on Jeonse Fraud expand support for rental fraud victims to enhance their housing stability

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) stated on the 10th that following amendments to the Special Act on Support for Victims of Jeonse Fraud and Housing Stability (“Special Act on Jeonse Fraud”), victims of jeonse fraud* can now use their residential officetels** as collateral for Bogeumjari Loan, HF’s long-term, fixed-rate mortgage with installment repayment options. 

  *  Victims of jeonse fraud and tenants as defined in Article 2 Subparagraph 4 of the Special Act on Jeonse Fraud  

  ** Officetels used for residential purposes out of semi-housing units as defined in Article 2 Subparagraph 4 of the Housing Act

When victims of rental fraud utilize residential officetels as collateral for the Home Guarantee Loan, the property value must be below KRW 900 million. Borrowers can ▲ access up to 80–100%* of the property’s value, ▲ with a maximum loan limit of KRW 400 million. Additionally, eligible borrowers can benefit from preferential interest rates, currently ranging from a minimum of 2.95% (10 years) to 3.25% (50 years), providing more favorable terms compared to standard Bogeumjari Loans.

 * For victims of rental fraud who acquire property through court auction, they can borrow up to 100% of the auction price, capped at the court’s initial appraised value. In other cases loans are available for up to 80% of the property’s value.

CEO Choi Joon-Woo commented, “Bogeumjari Loans have traditionally been available only for residential properties. As a result, even those recognized as victims of jeonse fraud were unable to use residential officetels, classified as semi-housing, as collateral. We have removed this obstacle to better support individuals facing challenges due to rental fraud.”

References:

1. Key Eligibility Requirements for Bogeumjari Loan Available for Victims of Jeonse Fraud

2. FAQs Regarding Bogeumjari Loan Available for Victims of Jeonse Fraud Using Officetels as Collateral