For Bogeumjari and Conforming Loans, Principal Payments to be Deferred for up to Three Years 

-  HF offers up to three one-year deferrals to vulnerable loan users

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) is set to make loan rescheduling easier for Bogeumjari and Confirming Loan users who are experiencing financial hardship due to job loss or leave of absence.

HF announced that it will revamp its principal payment deferral program on September 7, 2022, to support defaulting Bogeumjari and Conforming Loan borrowers to get back on their payment schedule. 

 HF raises the number of maximum allowed deferrals from 1 to 3 (for up to three years), allowing for three one-year deferrals 

So far, HF has only allowed Bogeumjari and Conforming Loan users to defer their principal payment three times (three up-to-one-year deferrals) when they are on childcare leave or living or working in a location designated as facing an employment and industrial crisis.

However, starting from September 7, it will also raise the number of maximum allowed deferrals for those Bogeumjari and Conforming Loan users suffering from financial hardship due to reasons such as job loss, leave of absence, or business closure or suspension* from 1 (up to one year) to 3 (three one-year deferrals). Accordingly, borrowers experiencing temporary difficulties paying their loan due to job loss or business closure will be able to defer their payment up to three separate times for a one-year period. This allows them to delay their principal payment for up to three years. 

* Job loss, leave of absence, business closure, business suspension, reduced income, death of a family member, divorce, etc.

HF is also applying this payment deferral to those who have recently divorced*. Until now, loan users applying for a payment deferral due to other reasons, such as the death of a family member, have been allowed to postpone their payment only when their application is made within six months from the date of the occurrence of such a reason. However, HF has also extended this period to up to one year.

* In consideration of potential financial difficulties as a result of property division in a divorce

 Principal payment deferral in place for special disaster areas (up to three years per disaster) 

Last April, HF offered a temporary three-year special principal payment deferral to victims of the East Coast forest fire after the affected areas were designated as a special disaster area. Moving forward, HF has adopted a deferral program specifically for loan users in areas of special disasters, like forest fires, so that they can use the program without any delay.

HF CEO Choi Joon-Woo said, “We hope that this improvement in our deferral program will reduce the home loan payment burden somewhat, especially for loan users facing tight economic conditions. HF will continue our efforts to improve our programs to help economically vulnerable groups get back on their feet.”

Reference: 1 copy of Key Details of HF’s Principal Payment Deferral Program