The Korea Housing Finance Corporation announced on the 31st that it will extend the principal repayment grace period for the Dwellings Mortgage and Eligible Loan from the existing 3 years to 5 years to assist vulnerable groups struggling with debt repayment.
The application targets include those who are ▲ unemployed, on leave, or who have closed their business ▲ couples with combined income decreased by more than 20% compared to the previous year ▲ households with more than two children under 19 years old ▲ small business owners with annual income below 25 million won.
The Korea Housing Finance Corporation also noted that if arrears on the Dwellings Mortgage and Eligible Loan continue for more than 2 months and result in loss of benefits, the late payment additional interest will be waived when paying back the principal and interest. For households of disabled people, those with multiple children, multicultural families, and basic livelihood recipients, the late payment additional interest will be fully waived for one instance.
The Korea Housing Finance Corporation will provide debt reduction support to customers who have diligently repaid their loans. Customers who have faithfully made partitioning repayments for over a year will receive a 5% discount if they repay the remaining debt of the receivable in full. Those who repay long-term arrears (written-off debt) assessed by the corporation as having low recovery prospects will be eligible for up to a 30% liability reduction benefit.
Furthermore, the Korea Housing Finance Corporation plans to reduce debt by up to 99% for seniors over 70 years old, basic livelihood recipients, and disabled individuals who hold long-term arrears of 5 million won or less. There are plans to reduce liability by up to 80% for small business owners, the youth, and residents of special disaster areas.
Kim Kyung-hwan, president of the Korea Housing Finance Corporation, said, "We will continue to prioritize diligent repayers and lower the threshold for debt adjustment to support economic recovery."