Monthly enrollments tripled from January-February levels after a 3 percent payout increase took effect in March; owner-occupancy requirement exceptions to apply from June
New enrollments in South Korea's home equity pension program are surging as monthly payouts rise and eligibility requirements ease. April marked the first time monthly sign-ups exceeded 2,000 in the program's history.
Korea Housing Finance Corp. data showed that 2,322 people newly enrolled in the home pension program in April, setting an all-time monthly record. Monthly enrollment had not topped 2,000 since March 2023, when 2,225 people signed up — the previous record.
The home pension program, launched in July 2007, allows homeowners aged 55 and older to receive monthly pension payments by putting up a home with a publicly assessed value of no more than 1.2 billion won (about $785,000) as collateral.
The surge in enrollments reflects the impact of a payout increase. Under a 2026 improvement plan the Financial Services Commission announced in February, new enrollees from March 1 onward receive higher monthly payments. For the average enrollee — a 72-year-old with a home valued at 400 million won — the monthly payout rises from 1.297 million won to 1.338 million won, an increase of about 3.13 percent. Monthly sign-ups, which had been sluggish at 939 in January and 780 in February, jumped to 1,287 in March before roughly doubling again in April.
Eligibility conditions will also be significantly relaxed starting June 1. New applicants from that date will be granted some exceptions to the owner-occupancy requirement. Single-home couples will be able to enroll even if they are not living in the mortgaged property, provided they have unavoidable reasons such as medical treatment, caring for a child, or moving into a senior residential welfare facility. Those renting out the collateral property to a third party may also enroll with Korea Housing Finance Corp. approval. The program has also been revised to allow elderly children aged 55 or older to enroll using the same property as collateral after a parent enrollee's death, without going through a separate debt repayment process.
Cumulative home pension enrollments surpassed 150,000 as of the end of last year.
psj@heraldcorp.com
