Special Campaign for Delinquent Borrowers of Bogeumjari Loan, Conforming Loan, and Jeonse Deposit Guarantee Until November
Korea Housing Finance Corporation (President Kim Kyunghwan) announced that, starting August 1, it will operate a debt adjustment program for borrowers who are experiencing difficulties in repayment among customers using Bogeumjari Loan, Conforming Loan, and guarantee products such as Jeonse Deposit Guarantee.
This program, designed to support economic recovery, includes principal repayment deferment, reduction of overdue interest, and a debt adjustment campaign.
Customers using Bogeumjari Loan or Conforming Loan may apply for principal repayment deferment once per year, for up to five years. If the grace period has expired due to overdue payments of two months or more, customers can receive a reduction in additional overdue interest by repaying the overdue principal and interest. Vulnerable groups such as persons with disabilities, households with multiple children, multicultural families, and recipients of basic livelihood security can receive a full waiver of additional overdue interest once.
Customers with less than two months of overdue payments can apply for both principal repayment deferment and reduction of additional overdue interest at the same time. In addition, for delinquent borrowers for whom the corporation has repaid the loan on behalf of the customer during the use of guarantee products such as Jeonse Deposit Guarantee, a "Special Debt Adjustment Campaign" will be conducted until November. The longer a customer has faithfully made repayments, the higher the debt reduction rate applied.
Specifically, customers who have been faithfully making installment repayments for more than one year will receive a 5% reduction if they make a lump-sum repayment of the remaining indemnity debt, and up to 30% reduction for a lump-sum repayment of written-off debt. Customers aged 70 or older, recipients of basic livelihood security, and recipients of disability pensions who have debts of 5 million won or less can receive up to 99% debt reduction. Small business owners, young people, and residents of special disaster areas can receive up to 80% reduction.
The requirements for installment repayment agreements have also been eased, lowering the initial payment ratio from the previous 5% of principal to just the first installment, and allowing re-agreement even if the previous agreement was voided due to non-compliance with the repayment plan. The maximum installment repayment period has been extended to 20 years.
Kim Kyunghwan stated, "I hope this debt adjustment program will provide practical help to customers facing economic difficulties," and added, "We will support customers' recovery by giving preferential treatment to those who faithfully repay and lowering the barriers to support."
Applications can be made through the corporation's call center, website, or the Smart Housing Finance app. Customers using Conforming Loan must apply through the bank that handled their loan.
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