HF Discusses Current Status of Housing Finance and Its Role in Times of Economic Uncertainty

- HF holds its 2023 Housing Finance Conference

- The conference provides insight into how to stabilize and advance the financial market

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) announced on September 6, 2023, that it held the 2023 Housing Finance Conference under the theme ‘The Current Status of Housing Finance and the Way Forward’ at the Federation of Korean Industries Hall in Yeouido, Seoul <see the image below>.

In his opening statement, HF CEO Choi emphasized, “As a vital player in the nation's financial stability network, HF is committed to proactively aligning with the government's policy for stabilizing financial markets to ensure that any market instability does not adversely impact housing finance. We're also dedicated to providing inclusive housing finance solutions that meet the needs of the public.” He also underscored, “During these times of economic uncertainty, we view today's conference as a valuable platform to advance our housing finance policies, ultimately contributing to the stability and growth of the financial market.” 

In his congratulatory speech, Secretary-General of the Financial Services Commission Lee Se-hoon stated, “Today's conference will serve as a valuable forum for deliberating strategies to attain housing stability and address diverse housing finance needs from a medium- to long-term perspective. It also offers an opportunity to exchange insights and opinions on the future trajectory of housing finance.” Lee emphasized, “HF should redouble its efforts to enhance the quality of household debt while bolstering housing assistance for low-income households and retirement security for seniors.” He further affirmed, “The government remains fully committed to ensuring that housing finance stands as a steadfast foundation for the well-being of the people.”

Growing Importance and Role of Housing Finance Amid Uncertainty in the Global Economy

The event featured a keynote speech from Professor Goh Sung-Soo from Konkuk University, who emphasized that housing finance has a pivotal role to play in times of global economic uncertainty. He explained that in such times, the government and related bodies should assess and mitigate risks across sectors, stressing “In times like this, it is even more important to enhance the qualitative structure of household debt using long-term fixed-rate mortgages.”

State-Sponsored Mortgages: Advancing Inclusive Finance by Enhancing Housing Welfare for Low-Income and Real Users

Session I, themed ‘Reviewing the Role and Soundness of Public Mortgages in the Transition Period of the Housing Market,’ featured insights from Researcher Kim Kwang-Wook from Korea Housing Finance Research Institute. Kim spoke highly of state-sponsored mortgages for advancing inclusive finance by helping non-homeowners and the underprivileged buy their own homes and by improving housing welfare for lower- and middle-class borrowers with reduced repayment burdens.

Enhancing MBS Products to Revitalize the MBS Market

During Session II, Professor Ahn Se-Ryung from Pukyong National University discussed ‘Revitalizing the MBS Market and Streamlining the Issuance Structure.’ Professor Ahn said, “Since the volume of MBS circulation in the domestic bond market is low, it is necessary to standardize MBS issuance structures, align them with investor preferences, and enhance repurchase accessibility to attract individual investors, thereby invigorating the MBS secondary market.”

An HF official said, "We will explore the role and direction of public mortgages based on the various opinions raised through this conference.”

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On September 6, 2023, HF CEO Choi Joon-Woo delivers his opening remarks at the 2023 Housing Finance Conference held at the Federation of Korean Industries Hall in Yeouido, Seoul, under the theme ‘The Current Status of Housing Finance and the Way Forward.’