Preferred-Type Housing Pension Subscription House Price Cap Raised from 150 Million to 200 Million Won

This Household Can Receive Up to 21% More from the Housing Pension

Provided by Korea Housing Finance Corporation

[Asia Economy Reporter Minwoo Lee] The eligible housing price for preferential housing pension subscription will be raised from under 150 million KRW to under 200 million KRW market value.

The Housing Finance Corporation (HF) announced on the 25th that it will adjust the conditions for the preferential housing pension starting from the 1st of next month. Accordingly, from the 1st of next month, if the housing price is under 200 million KRW market value, subscribing to the preferential housing pension will allow recipients to receive up to about 21% more monthly payments for life compared to the general housing pension.

Previously, if the housing price was between 150 million KRW and under 200 million KRW market value, only the general housing pension was available. However, as housing prices have recently risen and the eligible subscribers decreased, this adjustment was made to reflect the change. According to the Statistics Korea Household Finance and Welfare Survey, the proportion of houses under 150 million KRW market value among eligible households (self-owned households aged 65 and over) decreased from the bottom 56% at the time of the system's introduction in 2016 to the bottom 44% as of last year.

Additionally, from the 1st of next month, the HF will support appraisal fees for preferential housing pension applications when there is no housing market price available (from Korea Real Estate Board and KB Internet prices). For example, a homeowner with a 160 million KRW house can save about 360,000 KRW (including actual expenses) in appraisal fees.

For detailed information on the preferential housing pension subscription criteria and qualification maintenance conditions, please refer to the HF website or contact the call center.

Choi Junwoo, president of HF, said, "Considering the recent rise in housing prices which reduced the eligible subscribers for the preferential housing pension, we have adjusted the housing price to be more realistic," and added, "We will continue to improve the system to better support the elderly in their retirement."

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