Housing Finance Corporation Raises Jeonse Loan Guarantee Limit to 400 Million Won

[Asia Economy Reporter Eunju Lee] Korea Housing Finance Corporation announced on the 7th that starting from the 11th, it will raise the maximum limit of the Jeonse loan guarantee from 200 million KRW to 400 million KRW to alleviate the housing cost burden for low-income and actual demanders. This follows the 'Financial Sector Livelihood Stabilization Task Progress and Plan' announced by the Financial Services Commission in July.

The Housing Finance Corporation explained that this measure reflects the continuous rise in Jeonse prices. Applicants with a rental deposit of up to 700 million KRW in the metropolitan area (500 million KRW in other regions) can use the Jeonse loan guarantee within the new maximum limit of 400 million KRW starting from the 11th.

The applicable products are ▲General Jeonse Loan Guarantee ▲Group Jeonse Loan Guarantee. However, this increase applies only to those without homeownership; if the combined number of houses owned by the applicant and their spouse is one, the guarantee limit remains at 200 million KRW as before. Additionally, the Agreement Jeonse Loan Guarantee and Special Jeonse Product Guarantee, which have separately set limits, are excluded from this limit increase. Furthermore, if the Jeonse loan guarantee amount exceeds 200 million KRW, a bond preservation measure for the rental deposit must be implemented. This bond preservation measure means that upon expiration of the lease contract, the corporation can recover the rental deposit by establishing a pledge on the rental deposit return claim or by transferring the return claim to the corporation.