Silver Town Residents Can Continue Receiving Housing Pension... Support Scope Expanded

Easing of Eligibility Requirements... Last Year, 14,000 New Housing Pension Subscribers Marking an All-Time High

Financial authorities will improve the housing pension system within the first half of this year by expanding the actual residence requirement and broadening the eligibility for preferential products.

On the morning of the 3rd, Kim Ju-hyun, Chairman of the Financial Services Commission, attended the "On-site Meeting to Revitalize Housing Pensions for Strengthening Retirement Security" held at the Seoul Central Branch of the Korea Housing Finance Corporation in Jung-gu, Seoul, and stated, "With the elderly population expected to exceed 10 million next year, entering a super-aged society, proactive and creative responses considering domestic circumstances are necessary."

Financial Services Commission Chairman Kim Joo-hyun is speaking at a financial support meeting to address the climate crisis held at the Seoul Energy Dream Center in Mapo-gu on the 19th. Photo by Jo Yong-jun jun21@

He introduced measures promoted as national tasks under the current government, including ▲expansion of housing price standards (officially assessed price 기준 from 900 million KRW to 1.2 billion KRW) ▲increase of total loan limits (from 500 million KRW to up to 600 million KRW) ▲and expansion of eligibility criteria for preferential products. According to the Korea Housing Finance Corporation, as a result, the number of housing pension supplies last year reached 14,885 cases, a 31.1% increase compared to the average of the past five years, marking an all-time high.

Chairman Kim also announced plans to further expand the eligibility and benefits of preferential housing pension products within the first half of the year. The housing price eligibility for preferential housing pensions will be expanded from 200 million KRW to 250 million KRW, and the lump-sum withdrawal limit for cases requiring a large sum of money, such as illness, will be increased from 45% to 50% of the pension limit.

The exceptions to the actual residence requirement will also be expanded. He emphasized, "We will expand the reasons for exceptions to the actual residence requirement," adding, "We plan to support continuous receipt of housing pensions even in cases such as moving to a silver town."

During the subsequent meeting, measures to strengthen retirement income security through housing pensions were proposed. The Korea Housing Finance Research Institute stated, "In the mid to long term, to strengthen retirement income security using housing pensions, it is necessary to relax restrictions such as housing price, usage, and actual residence requirements to expand the eligibility." They also suggested, "It is necessary to diversify operational methods, such as increasing monthly payments for vulnerable groups through local government budget contributions or supplying idle collateral housing of pension subscribers as public rental housing."

Additionally, experts pointed out several areas for improvement, including ▲various restrictions on actual subscription due to housing price and actual residence requirements ▲many households feeling the guarantee level is insufficient compared to asset value ▲and insufficient change in perception that housing is an inheritance object in relation to the child generation.

Chairman Kim stated, "For a stable and happy society in old age, it is necessary to induce a change in perception that housing is not an 'object of inheritance' but a 'lifetime monthly salary' that lowers the burden of support for children and enables dignified retirement life for parents," and added, "Efforts should also be made to promote housing pensions so that anyone can wish to subscribe."