HF holds an inauguration ceremony for Choi Jun-woo, the new president of HF at the Busan Finance Center on February 5.

Korea Housing Finance Corporation (HF) announced on May 4 that it will implement a customized principal repayment exemption to ease the burden of mortgage payments for specially-employed workers whose income plummeted due to the COVID-19 pandemic.

HF has made an improvement to the system to make it easier for borrowers or their spouses to apply for a moratorium on principal repayment of HF’s mortgages if they received COVID-19 emergency employment stabilization support.

The move applies door-to-door salespeople, study instructors and freelancers, among others, who did not have employment insurance.

If a recipient prints details of his or her receipt of the COVID-19 Emergency Employment Security Support Fund (https://COVID19.ei.go.kr) and submit them to HF, the repayment of the principal of HF’s mortgages can be suspended without other documents.

It had been difficult to prove a decrease in income, due to a lack of documents issued by the National Tax Service, for specially employed people, so a grace program for their principal repayment had not been offered to them.

This special measure will lead customers such as specially employed people who use the grace system for principal repayment only need to pay back interest over the next one year. If it is possible to prove a cut in a person’s income at the end of the grace period, the person can extend his or her grace period for two more years.

“The special measure will allow specially employed people in blind spots to receive support in the repayment of their principal due to the COVID-19 situation,” an HF official said. “We will continue to develop various financial support systems for the marginalized.”

HF holds a launching ceremony for the HF College Student Volunteer Group for the Year of 2021 at the Busan Metropolitan City Volunteer Center on May 6. Kim Min-ho (second from left), vice president of HF, and Baek Soon-hee (second from right), head of Busan Metropolitan City Volunteer Center, pose for a photo shoot after the launching ceremony. (Photos: HF)

In addition, HF announced on May 6 that it held a launching ceremony for the HF College Student Volunteer Group for the Year of 2021 at the Busan Metropolitan City Volunteer Center. The HF College Student Volunteer Group has been carrying out various social contribution activities since 2016.

The group consists of 30 college students and will reach out a helping hand to marginalized people in the Busan area throughout 2021.

The members will plan and carry out activities matching the characteristics of communities such as making an improvement to residential environments, preparing COVID-19 quarantine kits and sharing Kimchi among others. It also plans to push for a cool loop project for poor households by partnering with the Busan City Volunteer Center and private companies.

“I think it is very meaningful to practice the spirit of sharing and considering others, one of HF’s core values, with college students,” an HF official said. “HF will steadily fulfill its social responsibilities for community development.”

In the meantime, HF announced on April 27 that it will launch a youth agreement fund guarantee product on May 3 by signing a housing support business agreement with Ulsan City, BNK and NH Bank.

Under this agreement, young people aged 19 to 34 living in Ulsan will be selected as those eligible for the program if they meet certain requirements such as income standards and not owning their houses.

HF guarantees up to 135 million won (90 percent of lease deposits) for security money for lease of 150 million won or less, while applying the minimum guarantee rate (0.05 percent per year).

In addition, Ulsan City will provide loan interest at a three-percentage-point limit on a loan of up to 50 million won per year, so young people in living in Ulsan will be able to receive interest support of up to 1.5 million won per year.

“Through this agreement, we will help young people suffering from job insecurity and income cuts due to the spread of COVID-19 to have new hopes while stably living at their current homes without being ejected,” an HF official said.

On the other hand, HF will provide a total of 17 local governments (11 metropolitan governments and 6 basic local governments) with products to guarantee monthly rent funds through this agreement.

From 2017 to March 2021, the company supplied about 6.8 trillion won in guarantees for monthly rent funds.