One Month After Launch of Special BoGeumJaRi Loan... 77,000 Applicants and 17.5 Trillion Won Requested

Preferred Type Application Rate 63%
Houses Under 600 Million Won 72%... Income Under 70 Million Won 60%

As the Special BoGeumjari Loan marks its first month since launch, the number of applications has reached 77,000, with the total application amount reaching 17.5 trillion KRW.

According to Korea Housing Finance Corporation (HF), as of the 28th, the number of Special BoGeumjari Loan applications totaled 76,842, with the application amount reaching 17.4669 trillion KRW, the corporation announced on the 7th.

According to HF, the purpose of the application funds was primarily for repayment of existing loans, accounting for 42,228 cases or 54.9%, more than half. This was followed by new home purchases (28,559 cases, 37.2%) and return of rental deposits (6,055 cases, 7.9%). In terms of amounts, repayment of existing loans accounted for 8.9903 trillion KRW, more than half at 51.5%, followed by new home purchases (6.9929 trillion KRW, 40.0%) and return of rental deposits (1.4837 trillion KRW, 8.5%).

HF stated, “It appears that various individuals are seeking the Special BoGeumjari Loan, including borrowers aiming to reduce interest burdens on existing loans, those hesitant to purchase homes due to real estate market conditions, and those facing difficulties returning rental deposits due to falling jeonse prices.”

Analyzing applicants by income, it was found that vulnerable groups such as low-income households and residents of low-priced homes had high usage rates. Approximately 49,000 applicants, or 63.3% of all applicants, applied for the ‘Preferential Special BoGeumjari Loan,’ which requires meeting both conditions of a combined couple’s annual income of 100 million KRW or less and a home price of 600 million KRW or less. Additionally, about 11,000 applicants (14.8%) who applied for preferential interest rates included low-income youth, newlyweds, persons with disabilities, and families with multiple children who require social consideration.

Looking at the income and home price distribution of all applicants, about 46,000 applicants (60%) had a combined couple’s income of 70 million KRW or less, and 8,261 applicants (10.8%) had a combined income of 30 million KRW or less. By home price, applications for homes priced at 600 million KRW or less accounted for about 55,000 cases (72.3%), and those applying for homes priced at 300 million KRW or less reached about 14,000 cases (18.5%).

Furthermore, the Special BoGeumjari Loan had a higher proportion of applicants residing outside the metropolitan area compared to mortgage loans from commercial banks. While mortgage loans from commercial banks had a metropolitan area share of 69.8%, nearly 70%, the Special BoGeumjari Loan’s metropolitan area share was 62.4%, about 7.4 percentage points lower.

An HF official said, “In a situation where concerns about interest rate hikes and economic slowdown are high, the Special BoGeumjari Loan seems to be alleviating difficulties for low-income and real demand borrowers to some extent,” adding, “We will do our best to make it easier for more people to use the Special BoGeumjari Loan by closely coordinating with banks and expanding face-to-face channels in the future.”

[Image source=Yonhap News]

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