Over 100 Applications Received Instantly After Lowered Housing Pension Enrollment Threshold... Smooth Start

103 Applications for Housing Pension Enrollment with Revised Regulations Applied from the 1st to 8th of This Month

[Asia Economy Reporter Park Sun-mi]Kim Myung-ja (alias, 65 years old), who has lived in an apartment in Gyeonggi-do (market price approximately 1.3 billion KRW) for over 20 years, sought to enroll in the Housing Pension starting late last year through phone and branch visit consultations. However, she was told that enrollment was difficult because the housing price exceeded the market price threshold of 900 million KRW. Considering the public sentiment to lower the entry barrier for the Housing Pension, she had been eagerly waiting for the revision of the Korea Housing Finance Corporation Act (KHFC Act) for over a year. Then, upon hearing the announcement of the KHFC Act amendment and the start of pre-application acceptance from the 1st of this month, she visited the local branch on the first day and applied for the Housing Pension. She was informed that she could start receiving the Housing Pension as early as next week.

With the amendment of the Korea Housing Finance Corporation Act allowing residents of houses and residential officetels with a publicly announced price of 900 million KRW (market price around 1.2 to 1.3 billion KRW) to enroll in the Housing Pension, the number of applicants has significantly increased. Although it is too early to predict the full effect immediately after the law's revision, the initial response is considered positive.

On the 11th, the Korea Housing Finance Corporation announced that, related to the KHFC Act amendment, it had received 103 Housing Pension applications under the revised law through pre-applications starting from the 1st of this month until the 8th. Among these 103 cases, 97 involved houses priced over 900 million KRW, and 6 were residential officetels. Of these, 4 applications were submitted via the online application system rather than by visiting the local branch.

Including these, the average daily number of Housing Pension applications received by the corporation from the 1st to the 8th was 54. Due to applications from residents of houses and residential officetels priced over 900 million KRW, this represents about a 30% increase compared to the average daily applications of 41.7 during the same period (1st to 8th) from September to November. It is also a clear increase compared to the average daily applications of 35.2 during the same period from July to September.

A corporation official explained, "Despite conducting consultations in a limited manner while complying with COVID-19 third wave quarantine guidelines, these results were achieved. Most applicants had been waiting for the law to be amended, and beyond the registered cases in the system, considering phone consultations, the number of consultations likely to lead to applications is even higher."

KHFC Act Amendment Promulgated on the 8th... Korea Housing Finance Corporation Implements Immediately

The corporation began accepting pre-consultations and reservation applications for the Housing Pension related to the new amendment from the 1st of this month, following the passage of the KHFC Act amendment in the National Assembly plenary session in November. After the amendment was promulgated on the 8th, the revised provisions have been implemented immediately.

However, despite the positive initial response due to waiting applicants eager for the lowered entry barrier, market reactions suggest it remains to be seen whether the number of Housing Pension subscribers will explode amid steadily rising housing prices. This is because the average housing price of Housing Pension subscribers has only recently just surpassed 300 million KRW.

As of the end of November this year, the cumulative number of Housing Pension subscribers exceeded 80,000 households. The average housing price was 303 million KRW, and 80.3% of the housing units were 85㎡ or smaller. The average monthly payment was 1,026,000 KRW, and the average age of subscribers was 72.2 years, with those in their 70s accounting for 47.5% and those in their 60s 34.1%. Among Housing Pension recipients, there are currently 71 customers aged 100 or older.

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