Applications for the Special BoGeumJaRi Loan have surpassed 22 trillion won, consuming more than 56% of the supply scale.
According to data submitted by the Korea Housing Finance Corporation (HF) to Choi Seung-jae, a member of the National Assembly's Political Affairs Committee from the People Power Party, as of the 17th, the application amount for the Special BoGeumJaRi Loan totaled 22.2918 trillion won, with 98,582 applications recorded. The Special BoGeumJaRi Loan is a product that integrates policy mortgages such as the existing BoGeumJaRi Loan, Safe Conversion Loan, and Eligible Loan, and will be operated temporarily for one year initially.
Looking at the application status by purpose, the application amount for "repayment of existing loans" was 10.574 trillion won (50,449 cases), "purchase of new housing" was 9.8013 trillion won (40,265 cases), and "return of rental deposit" was 1.9164 trillion won (7,868 cases).
By region, for the "preferential type," the metropolitan area received a total of 32,516 applications, accounting for 50.8% of the total, while non-metropolitan areas received 31,437 applications, accounting for 49.2%. For the "general type," the metropolitan area had 24,177 applications (69.8%), and non-metropolitan areas had 10,452 applications (30.2%).
The income distribution of households applying for the Special BoGeumJaRi Loan was 10.9% for those earning 30 million won or less, 26.4% for 30 million to 50 million won, 22.9% for 50 million to 70 million won, 17.1% for 70 million to 90 million won, and 22.7% for over 90 million won. The distribution by housing price was 19.1% for 300 million won or less, 54.4% for 300 million to 600 million won, and 26.5% for 600 million to 900 million won.
Loan approvals and closures for the Special BoGeumJaRi Loan amounted to 60,297 cases (61.2%), processing 13.7037 trillion won. Cases of disapproval were 3,553 (3.6%), totaling 775 billion won. Applications "under review" numbered 34,732 (35.2%), amounting to 7.8131 trillion won.
Assemblyman Choi argued that new measures should be sought to reduce interest rates on the Special BoGeumJaRi Loan, such as through credit life insurance. Credit life insurance is a product widely used overseas, where the insurer repays the remaining loan if the borrower suddenly dies or is injured and unable to repay. Since credit life insurance helps avoid the risk of non-repayment due to sudden accidents of the borrower and prevents non-performing loans, it strengthens the borrower's credit and also aids the financial soundness of lending institutions. He stated, "As a policy insurance, the government should support credit life insurance to strengthen the borrower's credit and consider measures to induce a corresponding reduction in loan interest rates."
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