The Korea Housing Finance Corporation (HF) will cut guarantee fees by up to 0.2 percentage points for low-income and vulnerable households.
HF said Tuesday that the preferential guarantee fees for housing guarantees will apply to applications received from the 20th. For small business households and disaster-affected households using individual guarantees such as home purchase and jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) loans, guarantee fees will be reduced by 0.1 percentage points and 0.2 percentage points, respectively. For jeonse deposit return guarantees, small business households will receive a 0.02 percentage point fee reduction, while disaster-affected households will receive a 0.03 percentage point reduction.
The scope of eligibility for preferential rates will also be expanded. Previously, the preferential rate on jeonse deposit return guarantees applied only to households with three or more children, but going forward, households with even one minor child will qualify for the benefit. The preferential rate on jeonse deposit return guarantees for low-income households earning 25 million won ($18,000) or less per year will also be expanded to 0.03 percentage points from 0.02 percentage points. "We will pursue inclusive finance to ease the housing cost burden on low-income and vulnerable groups," HF President Kim Kyung-hwan said.
