3.79 million won → 3.86 million won... Average Monthly Payment of Housing Pension to Increase by 0.7%

Expected Housing Price Increase Rate Rises Year-on-Year
Interest Rates and Increased Life Expectancy Partially Offset

Housing Pension Monthly Payment Examples (Unit: Thousand KRW) ※ Housing prices are based on internet market prices from the Korea Real Estate Board, etc., for general housing, lifetime payment method, fixed amount type. Photo by Korea Housing Finance Corporation

[Asia Economy Reporter Song Seung-seop] Korea Housing Finance Corporation announced on the 13th that starting next month, the monthly payment for new applicants of the Housing Pension will be adjusted.

From February 1st, the monthly payment for new applicants of the Housing Pension will increase by an average of 0.7%. Although the expected housing price increase rate compared to the previous year has risen, the increase in interest rates and the rise in life expectancy have partially offset this effect. For example, if you own a house valued at 900 million KRW and are 85 years old, the monthly housing pension payment will increase from 3,797,000 KRW to 3,866,000 KRW (lifetime payment method, fixed type).

Existing Housing Pension subscribers are not affected by this monthly payment adjustment and will continue to receive the same pension amount regardless of future fluctuations in housing prices. The eligibility criteria for housing price for the Housing Pension remain unchanged, with the publicly announced price limit set at 900 million KRW or less.

However, as the high-priced housing price standard under the Income Tax Act has been revised from a market price of 900 million KRW to 1.2 billion KRW, the upper limit of the recognized housing price for calculating monthly payments will change to 1.2 billion KRW.

A representative from Korea Housing Finance Corporation advised, “Since this monthly payment adjustment varies depending on the applicant's age and housing price, it is necessary to decide the timing of the Housing Pension application through consultation.”

Choi Jun-woo, President of Korea Housing Finance Corporation, emphasized, “With efforts such as expanding eligibility, diversifying pension receipt methods, and strengthening pension rights, the total number of Housing Pension subscribers exceeded 92,000 households by the end of last year and is expected to surpass 100,000 households this year. In 2022, we plan to actively promote the activation of the Housing Pension by expanding the support scope and benefits of the preferential Housing Pension to increase income for elderly people owning low-priced houses.”

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