From October, Monthly Payments for Housing Pensions on Homes Valued Over 900 Million Won to Increase by 20%

Starting this October, the monthly payment for housing pensions on homes valued at 900 million KRW or more will increase by up to 20%.

On the 27th, when the amendment to the Korea Housing Finance Corporation Act, which expands the eligibility for housing pension subscription from houses with a current official price of 900 million won or less to those with 1.2 billion won or less, passed the National Assembly's Political Affairs Committee bill subcommittee, a notice related to the housing pension was posted at the Seoul Jungbu branch of the Korea Housing Finance Corporation in Jung-gu, Seoul. Photo by Dongju Yoon doso7@

The Korea Housing Finance Corporation (HF) announced on the 29th that if the revision of the Enforcement Decree of the Housing Finance Corporation Act related to housing pensions is completed, from October 12th, new applicants will see the eligible housing price for enrollment raised from a publicly announced price of 900 million KRW or less to 1.2 billion KRW or less, and the total loan limit will also be increased from 500 million KRW to 600 million KRW.

Currently, the Enforcement Decree has completed the legislative notice and is awaiting approval from the Financial Services Commission. Once it passes both the Vice-Ministerial Meeting and the Cabinet Meeting, it is scheduled to be implemented on October 12th, along with the increase in the total loan limit.

The increase in the total loan limit is intended to provide an appropriate monthly payment relative to the increased eligible housing price, with monthly payments increasing by up to 20%. The amount of increase varies depending on the applicant’s age and housing price, and if the total loan limit is 500 million KRW or less, the monthly payment will not change.

This system change will apply to new applicants from October 12th onward. However, existing subscribers who can receive higher monthly payments due to the increase in the total loan limit (from 500 million KRW to 600 million KRW) can cancel and re-enroll within six months from the implementation date.

An HF official stated, “We expect the number of housing pension subscribers to increase due to this system improvement,” adding, “The corporation will continue to strive to support the elderly in securing stable housing and income in their retirement.”