Commercial banks will introduce a repayment deferral program that allows borrowers on parental leave to postpone principal payments on mortgage loans. The Korea Federation of Banks said on Dec. 23 that the banking sector plans to implement the program as part of efforts to address low birthrates, starting at the end of next month.
Eligible applicants are single-dwelling owners whose borrower or spouse is on parental leave as of the application date. Among mortgage loans that have passed one year since disbursement, applications are allowed if the dwelling price is 900 million won or less at the time of application.
The repayment deferral can be granted for up to one year upon initial application. If parental leave continues until before the end of the deferral period, it can be extended up to two times in one-year increments.