Housing Finance Corporation Expands Limits and Usage Requirements for 'Yuhanchaegim Bogumjari Loan'

Key Points of the Limited Liability Bogumjari Loan System Improvement.

[Asia Economy Reporter Song Seung-seop] Korea Housing Finance Corporation announced on the 29th that it will relax the limits and conditions of the 'Limited Liability Bogeumjari Loan.'

Previously, those with an annual income (combined for couples) exceeding 70 million KRW were not eligible to use the Limited Liability Bogeumjari Loan, but for newlyweds, the limit has been increased to 85 million KRW. Multi-child families can now use up to 100 million KRW depending on the number of children. The loan limit, which was uniformly applied up to 360 million KRW regardless of the number of children, has also been changed. Families with three or more children can use up to 400 million KRW.

The Limited Liability Bogeumjari Loan is a product that limits the borrower's repayment responsibility to the collateral housing when there is a problem with the borrower's repayment ability. No additional repayment can be demanded beyond the recovery amount from the disposal of the collateral housing. It alleviates the borrower's economic burden and serves as a minimum social safety net in times of economic crisis.

The usage requirements for the Limited Liability Bogeumjari Loan have also been relaxed. In addition to purchasing a house and repaying loans, it is now possible to use the Limited Liability Bogeumjari Loan for the purpose of returning rental deposits (for compensation). Also, for row houses, multi-family houses, and detached houses, the loan can be received regardless of the evaluation score. Until now, evaluations such as the age of the collateral housing and the increase rate of households in the area had to be conducted.

Choi Jun-woo, president of Korea Housing Finance Corporation, said, “The relaxation of the usage requirements for the Limited Liability Bogeumjari Loan reflects the corporation’s commitment to protecting financial consumers and practicing inclusive finance,” adding, “We hope that this institutional improvement will further strengthen the financial safety net of our society.”