[Asia Economy Reporter Kwon Haeyoung] Starting next month, individuals aged 55 and older will be eligible to join the Housing Pension program.
The Korea Housing Finance Corporation announced on the 30th that it will lower the minimum age for joining the Housing Pension from 60 to 55. This follows the amendment of the Enforcement Decree of the Corporation Act, which sets the age for joining the Housing Pension, as a follow-up measure to the "Private Pension Activation Plan to Support Asset Formation for Retirement Preparation."
Accordingly, if either the individual or their spouse reaches the age of 55 and joins the Housing Pension, a house valued at 500 million KRW will provide a monthly payment of 770,000 KRW for life. Since the monthly payments are made to the couple for life, the younger spouse is used as the basis, as is currently the case.
Additionally, middle-aged individuals with mortgage loans can use the lump-sum withdrawal option from the Housing Pension to repay existing loans, thereby reducing the burden of principal and interest repayments. For example, a 55-year-old owning a house valued at 500 million KRW can withdraw up to 135 million KRW (90% of the pension payment limit) as a lump sum to repay the loan and receive the remaining amount as a pension.
If the house price is below 150 million KRW and one spouse is a basic pension recipient (aged 65 or older), they can use the preferential Housing Pension, which offers up to 20% higher monthly payments compared to the standard Housing Pension.
A representative from the Korea Housing Finance Corporation stated, "Middle-aged individuals who lack income before receiving public pensions after early retirement can now receive a fixed monthly amount through the Housing Pension," adding, "The Corporation will continue to improve the system so that the Housing Pension can serve as a practical retirement security measure."
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