The authorities plan to temporarily operate a special Bogeumjari Loan by integrating Relief Conversion Loan and Conforming Loan and existing Bogeumjari Loan.
Recent interest rate hikes resulting from global monetary tightening have significantly increased households’ debt servicing burden. In this regard, aiming to reduce the debt payment burden of more borrowers, the government will temporarily run a special Bogeumjari Loan that integrates together the regular type of Relief Conversion Loan, Conforming Loan, and the existing Bogeumjari loan for a year from the beginning of 2023.
For the newly introduced special Bogeumjari Loan, debtors whose house price is KRW900 million or less will be able to apply regardless of their income. Maximum loan amount will be increased from KRW360 million to KRW500 million. Borrowers can use this loan for purposes of purchasing a new house, replacing existing loans or returning security deposits.
The special Bogeumjari Loan will be granted at a single interest rate in the same way as the current Bogeumjari Loan program. Meanwhile, a concessionary interest rate will be applied, which is decreased to a certain extent from an appropriate interest rate that is calculated with the current method.
The specification of the loan including detailed implementation schedule and concessionary rate will be announced later, after considering computational adaptation, preparation periods for financial institutions, and etc.
* Please refer to the attached PDF for more details.