[2021 National Audit] More than Half of Korea Housing Finance Corporation's 'Qualified Loans' Go to 20s and 30s

Choi Jun-woo, President of the Korea Housing Finance Corporation, attended the National Assembly's inspection of the Deposit Insurance Corporation and others held by the National Assembly's Political Affairs Committee on the 18th, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Song Seung-seop] It has been identified that more than half of the ‘Qualified Loan’ products from the Korea Housing Finance Corporation this year were received by people in their 20s and 30s.

According to the ‘Policy Mortgage Supply Performance by Borrower Age Group’ data submitted by the Korea Housing Finance Corporation to Lee Jung-moon, a member of the National Assembly’s Political Affairs Committee from the Democratic Party of Korea, as of September, out of the qualified loan performance of 4.0561 trillion KRW, the share of those in their 20s and 30s reached a majority of 54.8%.

The qualified loan is a policy mortgage product operated by the Korea Housing Finance Corporation. It does not consider the borrower’s income, so even high-income earners can use it.

By generation, those in their 30s accounted for the largest portion at 48.7%, and those in their 20s received 6.1%. People in their 40s and 50s accounted for 28.9% and 11.4%, respectively, while those aged 60 and above accounted for 5.0%. Three years ago, the supply performance was highest among those in their 40s at 33.6%, and the share of those in their 20s and 30s was 36.2% at that time.

In the case of the ‘Bogeumjari Loan,’ which helps low-income families and newlyweds purchase homes, the youth generation’s share has traditionally been large due to income requirements, but the share of those in their 20s is increasing particularly rapidly. The share of those under 30 increased from 9.9% in 2018 to 15.2% as of last month.

Assemblyman Lee Jung-moon pointed out, “Recently, in the metropolitan area, due to rising housing prices, it has become more difficult for vulnerable groups such as newlyweds and multi-child families to use policy mortgages,” and added, “Financial authorities should promptly prepare measures to support housing finance for low-income people, including easing the loan requirements for the Bogeumjari Loan.”