Official Subscription Starts Today for City 1.3 Billion Won Houses and Residential Office-tels

Amendment to Korea Housing Finance Corporation Act Promulgated on December 8
Immediate Implementation of Expanded Eligibility for Housing Pension as Income Alternative for Middle-Aged Homeowners

Detailed Explanation of the Housing Pension Product

[Asia Economy Reporter Park Sun-mi] From the 8th, houses with a publicly announced price up to 900 million KRW (market price around 1.2 to 1.3 billion KRW) and officetels for residential purposes can also join the Housing Pension.

Korea Housing Finance Corporation (HF) announced on the 8th that following the approval of the amendment to the "Korea Housing Finance Corporation Act" at the Cabinet meeting on the 1st and its promulgation on the same day, it will immediately implement the relaxation of price criteria lowering the threshold for joining the Housing Pension (market price 900 million KRW → publicly announced price 900 million KRW) and include officetels for residential purposes as eligible housing under the amended Act.

The publicly announced price can be checked on the 'Real Estate Public Price Informer,' and the most recent publicly announced price as of the Housing Pension application date will be applied to determine whether it is below 900 million KRW. However, in cases where there is no publicly announced price for officetels, etc., the standard market price used for property tax calculation, market price, or appraisal value will be applied in order to determine eligibility for the Housing Pension. If the eligible housing price exceeds 900 million KRW in market price, the monthly payment of the Housing Pension will be calculated with a cap of 900 million KRW market price.

Additionally, officetels for residential purposes must have the Housing Pension subscriber registered as a resident and actually living there, equipped with residential facilities such as a kitchen, and must be listed as a house on the 'Local Tax Itemized Taxation Certificate' with property tax levied under the housing category. For a 300 million KRW officetel for residential purposes, a 60-year-old would receive 458,000 KRW monthly, and a 70-year-old would receive 736,000 KRW monthly for life.

President Lee Jeong-hwan said, "Before the promulgation of the Corporation Act, a total of 81 cases were received from pre-consultations and applications starting from the 1st," adding, "After procedures such as guarantee agreements, pensions can be received sequentially." He also added, "With the formal application and enrollment starting today through the implementation of the amended Corporation Act, we hope that middle-aged and older people facing difficulties due to COVID-19 can spend a somewhat warmer year-end through the Housing Pension."

An HF Corporation official stated, "Customers who want consultation and enrollment for the Housing Pension can visit a nearby branch, or if visiting is difficult, they can conveniently use the service by contacting the corporation's website or call center."

This content was produced with the assistance of AI translation services.