HF Construction Exports Domestic Housing Pension System to Malaysia

On the 24th, a video consultation meeting was held with Chagamas housing finance institutions and the introduction of the housing pension system

Korea Housing Finance Corporation and Malaysia's housing finance institution Cagamas held a video consultation meeting on the 24th at the Busan International Finance Center headquarters to introduce the Malaysian housing pension system.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] South Korea's housing pension system will be 'exported' to Malaysia.

Korea Housing Finance Corporation (HF) held a video consultation meeting on the 24th with Malaysia's housing finance institution Cagamas Berhad to introduce the Malaysian housing pension system.

Cagamas, established in 1986, is a housing finance institution under the Central Bank of Malaysia that purchases bonds and issues securitized securities. The housing pension, the main agenda of the consultation meeting, is a system where elderly and middle-aged people aged 55 or older receive lifelong pensions while residing in their own homes.

At this video meeting, CEOs and working-level staff from both institutions attended to discuss the characteristics of the housing pension, the pension actuarial model structure and key assumptions, types of major risks and management measures, and consultation matters with related organizations during system operation.

Since signing a memorandum of understanding to strengthen exchange and cooperation with Cagamas in April last year, Datuk Chung, CEO of Cagamas, requested to share Korea's housing pension system and business experience. Technical aspects of Korea's housing pension have been discussed practically, and due to the recent COVID-19 situation, this non-contact meeting was held.

Recently, Malaysia is preparing a reverse mortgage system to secure income for the elderly population, and after holding a consultation meeting with the Housing Finance Corporation in the second half of this year, it plans to finalize the product development plan and launch the reverse mortgage product next year.

Lee Jeong-hwan, President of HF Corporation, said, "The housing pension system introduced for the retirement stability of the Korean people is now attracting global attention. At the end of 2018, the Philippines benchmarked Korea's housing pension system, and through this consultation with Malaysia, we plan to actively transfer housing finance models and experiences to Asia through international cooperation in the future."

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