Housing Finance Corporation Expands Preferential Guarantee Fee Benefits

Korea Housing Finance Corporation is expanding the scope of preferential guarantee fees for housing guarantees to alleviate the housing cost burden on low-income and vulnerable groups.

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On April 20, the Housing Finance Corporation announced that, starting with guarantee applications submitted on this date, it will strengthen guarantee fee benefits for small business owners, disaster-affected households, families with children, and low-income individuals. This measure aims to reduce financial costs for groups in need of policy support and to enhance the corporation's role in inclusive finance.

First, the discount rate for guarantee fees for small business households and disaster-affected households will be increased. Small business households will receive a 0.1 percentage point discount for individual guarantees and a 0.02 percentage point discount for Jeonse deposit return guarantees. Disaster-affected households will benefit from a 0.2 percentage point reduction for individual guarantees and a 0.03 percentage point reduction for return guarantees.

Support for households with children will also be strengthened. Previously, only households with three or more children were eligible, but now the benefit will be extended to households with at least one minor child, including unborn children. Depending on the number of children, a guarantee fee preference of 0.01 to 0.03 percentage points will be applied. In the case of Jeonse fund guarantee products, a preferential rate of 0.05 to 0.2 percentage points has already been in effect since January of this year. Support for low-income families will also be expanded. For households with an annual income of 25 million won or less using the Jeonse deposit return guarantee, the discount rate for guarantee fees will be increased from the current 0.02 percentage points to 0.03 percentage points.

Kim Kyunghwan, President of Korea Housing Finance Corporation, said, "We hope this system improvement will help ease the housing cost burden for low-income and vulnerable groups," adding, "We will continue to promote inclusive finance, focusing on those in need of policy support."

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