Special Employment Workers to Receive Policy Mortgage Principal Repayment Deferral Support

Housing Finance Corporation Strengthens Financial Support for Recipients of 'COVID-19 Emergency Employment Stability Subsidy'

COVID-19 Customized Principal Repayment Deferral Special Program

[Asia Economy Reporter Song Seung-seop] Jeong Woo-soon (pseudonym), who taught violin as a freelancer at social welfare centers, experienced a decrease in income due to the suspension of face-to-face classes amid the spread of COVID-19. Facing financial difficulties and the heavy burden of loan repayments, Jeong learned from an acquaintance about the 'COVID-19 Customized Principal Repayment Deferral Special Case' program offered by HF Corporation. Jeong applied for principal repayment deferral on the Bogeumjari Loan through the corporation's website. After review by the local governor, Jeong received support to pay only the monthly interest of 210,000 KRW for one year instead of the usual monthly principal and interest payment of 530,000 KRW.

The Housing Finance Corporation (HF) announced on the 4th that it will implement the ‘COVID-19 Customized Principal Repayment Deferral Special Case’ to ease the burden of mortgage loan repayments for special employment workers whose income has decreased due to COVID-19, among users of Bogeumjari Loans and qualified loans.

HF Corporation has improved the system to allow borrowers or their spouses who are not enrolled in employment insurance?such as door-to-door salespeople, private tutors, and freelancers?and who have received the ‘COVID-19 Emergency Employment Stability Subsidy’ to easily apply for principal repayment deferral on the corporation’s policy mortgages.

Eligible individuals can print their subsidy receipt from the COVID-19 Emergency Employment Stability Subsidy website or obtain confirmation of receipt from regional employment centers and submit it to the corporation. This allows them to defer principal repayment on HF Corporation’s mortgage loans, including Bogeumjari Loans, without any additional documents. This improvement addresses the difficulty special employment workers faced in proving income reduction, as the National Tax Service does not issue supporting documents for them, which previously prevented them from using the principal repayment deferral program.

Under this special measure, customers such as special employment workers using the principal repayment deferral program need only pay interest for the next year. If proof of income reduction becomes available at the end of the deferral period, the deferral can be extended for an additional two years (in one-year increments).

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