"Reverse Mortgage Benefits Only High-Priced Homes... Up to 1 Million Won Payment Gap Even Within Seoul"

Seoul Average: 1.69 Million Won vs. Non-Metropolitan Areas: 870,000 Won
Monthly Payments in Seoul Vary by Up to Twofold

The actual payment amounts of the reverse mortgage program operated by the Korea Housing Finance Corporation show a significant gap not only between the Seoul metropolitan area and other regions, but also within Seoul itself, with differences of nearly twofold.

According to data submitted by Assemblyman Kim Jaeseop of the People Power Party from the Korea Housing Finance Corporation on October 4, 2025, the average monthly payment for reverse mortgage subscribers as of July 2025 was 1.69 million won in Seoul and 870,000 won in non-metropolitan areas, showing a nearly twofold difference.

Kim Jaeseop, member of the People Power Party. Courtesy of Kim Jaeseop's office

Within Seoul, the districts with the highest monthly payments were Seocho-gu (2.27 million won), Yongsan-gu (2.2 million won), and Gangnam-gu (2.17 million won), in that order. The gap between the highest and lowest payment amounts reached approximately 970,000 won.

Among major metropolitan cities and provinces, Jeonnam had the lowest average monthly payment at 589,000 won. Even when applying the maximum preferential rate (20%) of the corporation's "preferential reverse mortgage," the amount only reached around 700,000 won, which is less than half the Seoul average. This reveals the reality that elderly people who own low-priced homes in non-metropolitan areas find it difficult to secure a stable retirement, even with institutional benefits.

The lower the home price, the more insufficient the reverse mortgage monthly payment becomes, making it difficult to cover even basic living expenses in retirement. As a result, those with fewer assets are locked into a cycle of poverty in old age, which undermines the original purpose of the program, designed to ensure financial security for seniors.

Assemblyman Kim Jaeseop stated, "The reverse mortgage program was introduced to guarantee retirement security for ordinary citizens, but in reality, the benefits are concentrated among owners of high-priced homes. Elderly people with lower-valued homes receive such insufficient payments that it is difficult for them to feel the effectiveness of the program."

He further emphasized, "A system created to ensure retirement income for the public is instead becoming a tool that deepens wealth polarization. It is essential to implement effective reforms, such as reducing regional disparities and establishing a payment structure that elderly owners of low-priced homes can truly benefit from."