HF Expands Special Jeonse Loan Guarantees for Vulnerable Groups

- Maximum guarantee amount raised from KRW 50 million to KRW 80 million

 - This expansion available to those applying for CCRS’s fast-track loan rescheduling program thanks to their sound repayment history

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) announced on August 18, 2022, that on the 19th it will raise the maximum amount of the Special Jeonse Loan Guarantees available for small business owners and low-income state-guaranteed loan users from the current KRW 50 million to KRW 80 million as part of its effort to improve housing stability for economically vulnerable groups. 

Maximum amount of Special Jeonse Loan Guarantees for vulnerable groups raised from the current KRW 50 million to KRW 80 million 

This raise applies to the Special Jeonse Loan Guarantees available to ▲ those applying for credit restoration, ▲ socially underprivileged groups, ▲ low-income state-guaranteed loan users*, and ▲ small business owners<See Attachment 2>.

* All financial products launched by Korea Inclusive Finance Agency forlow-income groups, including Sunshine Loans, Smile Financing, New Hope Seed Loans, and Dream-for-Change Loan

Depending on whether a preservative measure* is taken, ▲ Special Jeonse Loan Guarantees of up to KRW 60 million are offered to those applying for credit restoration, the socially underprivileged, and low-income state-guaranteed loan users with an annual income of KRW 15 million or less. For ▲ small business owners and low-income state-guaranteed loan users with an annual income of over KRW 15 million, Special Jeonse Loan Guarantees of up to KRW 80 million are available. 

* Where a pledge is set on HF’s right to claim the return of the rental deposit or the return bond is transferred to HF at the expiration of the lease contract so that HF can get the deposit back

HF expands the coverage of the Special Jeonse Loan Guarantees for vulnerable groups

In addition, HF has expanded the coverage of the Special Jeonse Loan Guarantees. Now, the Guarantees are available to those applying for the Credit Counseling and Recovery Service (CCRS)’s fast-track credit restoration program and having diligently made at least 12 payments on their debt adjustment schedule.  

It has also eased the eligibility requirements for small business owners by expanding the Guarantees to those with an annual business income of KRW 25 million as well as those exempt from VAT payment to provide stronger support for small business owners experiencing financial difficulties due to factors like the COVID-19 pandemic. 

HF CEO Choi Joon-Woo said, “These improvements in our Special Jeonse Loan Guarantees are expected to boost housing stability for socially and economically vulnerable people. HF is and will remain committed to greater housing finance support for vulnerable groups in our society.”