HF signs a business agreement on expand lease deposit money guarantees for young people and newlyweds at Busan City Hall. From left are Choi Joon-woo, president of HF, Park Heong-joon, mayor of Busan, and Ahn Kam-chan, president of BNK Busan Bank. (Photo: HF)

Korea Housing Finance Corporation (HF) announced on Aug. 18 that it signed a business agreement with Busan City and BNK Busan Bank to support young people and newlyweds by expanding lease deposit money guarantees for them in Busan.

The agreement will increase the loan limit for newlyweds who use lease deposit money guarantees by 50 million won from 150 million won to 200 million won.

In addition, BNK Busan Bank will lower the interest rate to 1.5 percent and Busan City will provide 1.5 percentage points of the interest to newlyweds.

As a result, qualified newlyweds can use lease loans with virtually no interest. The interest burden level is expected to be 0.3 percentage points to 0.8 percentage points lower than before the change.

HF will also expand lease deposit money guarantees for young people in Busan. The loan limit will be increased by 70 million won from 30 million won to 100 million won.

At the same time, the guarantee limit, which was 80 percent of lease deposit money will be expanded to 90 percent. BNK Busan Bank will lower its lending rate to 1.5 percent, and Busan City will provide 1.5 percentage points of the interest to young people.

As a result, young people will be able to use loans for leases without burden on interest on loans just like newlyweds.

Through this agreement, HF will provide not only 100 percent guarantee for young people and newlyweds but an increase in guarantee limits and a minimum guarantee rate (0.02 percent).

However, since it is a product that receives financial support from the Busan Metropolitan Government, those who use the services should maintain their eligibility not only at the time of application but also during the period of use.

Newlyweds in Busan will be able to apply for the service at BNK Busan Bank branches beginning on Sept. 16, and loans will be given beginning in October after a screening period.

In addition, young people will be able to apply for the lease deposit money guarantees for young people through the Busan Youth Platform in September and will receive loans beginning in October after reviews by the Busan City Government and BNK Busan Bank.

“I hope that young people and newlyweds will have their dreams in their homes through this agreement,” said Choi Joon-woo, president of HF. “We will continue to actively cooperate with local governments to fully support inclusive housing finance for young people and newlyweds.”

Meanwhile, HF supplies full-time and monthly lease guarantee products to a total of 18 local governments (11 municipal governments and lower level local governments).

From 2017 to July 2021, its cumulative guarantees for leases and monthly rent totaled about 7.8 trillion won with an average of 55 million won per a young person and 159 million won per newlywed.

Meanwhile HF reached out those in need by actively conducting social contribution activities. HF announced on July 26 that it has donated money to “Busan Social Vaccine Sharing Campaign” spearheaded by the Busan Branch of the Community Chest of Korea to help marginalized people suffering from the prolonged COVID-19 crisis in Busan.

The Busan Social Vaccine Sharing Campaign is a donation project conducted by the Busan Branch of the Community Chest of Korea. It asks individuals and companies to support vulnerable groups amid the novel coronavirus crisis in Busan.

“As there is a saying that disasters attack weak people first, our society needs to pay attention to them and give support to those vulnerable to the pandemic such as the elderly, children, and small business owners,” HF President Choi said.

In early August, HF provides summer health foods at the Nam-gu Social Welfare Center in Busan. HF donated sets of summer health foods consisting of Samgyetang (chicken soup with ginseng), fruits and rice cakes to 150 low-income elderly people in Busan selected by welfare centers.

To the elderly who lived alone and have trouble moving, HF delivered them by using a small electric vehicle.

HF donated the electric vehicle so it would be used in providing visiting welfare services and delivering lunch boxes in April 2020.

“I hope the elderly will be able to stay by eating Samgyetang and other healthy foods,” HF President Choi said. “We will continue to actively promote various social contributions for senior citizens in Busan.”