Changed Criteria for Housing Pension Enrollment... "257 More People Benefited Last Month"

Assemblyman Kim Byung-wook: "Glad More Citizens Enjoy Real Benefits from Law Enforcement"

[Asia Economy Reporter Park Sun-mi] Last month, on the 8th, with the enactment of the Housing Pension Activation Act (Korea Housing Finance Corporation Act, abbreviated as the Corporation Act), the price criteria for houses eligible for housing pension enrollment were relaxed, and enrollment for residential officetels was permitted. As a result, a total of 257 citizens benefited from new enrollments during December.

On the 11th, Kim Byung-wook, a member of the Democratic Party of Korea, reported based on data from the Korea Housing Finance Corporation that following the implementation of the Corporation Act amendment, a total of 257 citizens newly enrolled in the housing pension during December. Among these, 236 cases enrolled due to the relaxation of the price criteria from a market price of 900 million KRW to an official assessed price of 900 million KRW, and 21 cases enrolled due to the allowance of residential officetel enrollment. This accounts for 22% of the total 1,169 supply cases during the same period, indicating that the effects of the Corporation Act amendment are immediately visible.

Looking at the additional enrollment performance by region due to the expanded eligibility, Bundang-gu in Gyeonggi-do recorded the highest number with 47 cases, followed by Seongdong-gu in Seoul with 23 cases, and Gangdong-gu with 21 cases.

Representative Kim said, "Among Koreans' held assets, the proportion of real assets such as real estate is 74.4%, which is significantly higher compared to the United States (30.5%) and Japan (37.8%). Many elderly people lack sufficient preparation for retirement living expenses despite the increased value of their actual residences. It is fortunate that more citizens are enjoying practical benefits due to the enforcement of this law." He added, "As the aging process accelerates, I expect the housing pension to continue playing an important role in helping more citizens prepare for their retirement."

The Housing Pension Activation Act was primarily proposed by Representative Kim in June to lower the enrollment threshold for housing pensions and expand guarantees for stable retirement living for citizens, and it passed the plenary session in November. The bill includes ▲raising the upper limit of the housing price eligible for housing pension enrollment from the current market price of 900 million KRW to an official assessed price of 900 million KRW, ▲adding a trust method as a collateral acquisition method for the housing pension (upon the subscriber’s choice) so that the housing pension can be automatically inherited by the spouse after the subscriber’s death, and ▲allowing officetels to also enroll in the housing pension.

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