Housing Finance Corporation Lowers Barriers for Limited Liability Qualified Loan Use

Korea Housing Finance Corporation logo.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Korea Housing Finance Corporation (HF) will ease the application requirements for the 'Limited Liability Qualified Loan' starting from the 1st of next month.

The limited liability loan is a type of loan where, if the borrower faces repayment difficulties, repayment is limited to the collateral housing, and no additional repayment beyond the amount recovered from the disposal of the collateral housing can be demanded.

The corporation first introduced the limited liability Bogeumjari Loan in May 2018 to stabilize housing for low-income and actual demanders and support their recovery.

The limited liability qualified loan was previously available only for the purpose of purchasing a home by non-homeowners, but going forward, it can also be used for purposes such as securing the return of rental deposits and repaying loan amounts.

Additionally, temporary two-homeowners will also be able to apply for limited liability loans, and for row houses, multi-family houses, and detached houses, collateral housing screening will not be applied.

President Choi Jun-woo said, “We have lowered the threshold for limited liability qualified loans to support actual demanders who are struggling due to rising prices and interest rates,” adding, “We will continue to fulfill our role as a policy institution leading the stabilization of people’s livelihoods and inclusive finance.”

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