HUG, 70% Reduction in Early Repayment Fees for Didimdol Loans for Home Purchase in First Half of Year

[Asia Economy Reporter Ryu Tae-min] The Housing and Urban Guarantee Corporation (HUG) announced on the 28th that it will reduce the early repayment fee for the 'My Home Preparation Didimdol Loan' by 70% from next month 1st to June 30th.

The fee reduction applies to borrowers who repay the loan early within three years from the loan execution date. When repaying early, only 30% of the existing fee must be paid.

For example, if the loan is repaid one year after execution, the previous fee rate of 0.8% applied, but after this system improvement, the fee rate is reduced to 0.24%. If two years have passed since the loan, the actual fee burden rate drops further to 0.12%.

This early repayment fee reduction was implemented to encourage early repayment by customers with repayment capacity among Didimdol loan users. The repaid funds will be used as resources for the My Home Preparation Didimdol Loan to focus on supporting low-income and real demand groups.

Kwon Hyung-taek, President of HUG, said, "The system was improved to alleviate the burden caused by the prolonged COVID-19 pandemic," and added, "We will continue to strive for national housing stability through fund support."