According to the Korea Housing Finance Corporation, there were 2,322 new home pension subscribers in April, marking the highest monthly total ever recorded.
The home pension program, introduced in July 2007, allows homeowners aged 55 and older to receive a pension for life or for a set period by using their homes valued at 1.2 billion won or less as collateral.
The increase in subscribers is attributed to improvements in the program that took effect in March. Following a proposal by the Financial Services Commission in February, new subscribers since March 1 can receive higher pension amounts than before.
For an average subscriber (72 years old with a home valued at 400 million won), the monthly pension amount increased from 1.297 million won to 1.338 million won, a rise of approximately 3.13%.
Consequently, the number of new subscribers rose from 939 in January and 780 in February to 1,287 in March, and then to 2,322 in April. This marks the first time since March 2023 (2,225 subscribers) that monthly subscriptions exceeded 2,000.
Starting in June, further relaxation of eligibility requirements is expected to sustain this growth trend.
As of June 1, homeowners with one property can now join the home pension program even if they are not residing in the collateralized home due to unavoidable circumstances such as medical treatment, caring for children, or moving to a senior living facility.
If the collateralized home is rented to a third party, applicants can still join the program with approval from the Korea Housing Finance Corporation.
Additionally, if a subscriber passes away, their children aged 55 or older can join the program using the same home as collateral without needing to go through a separate debt repayment process.
As of the end of last year, the cumulative number of home pension subscribers exceeded 150,000.
A representative from the Korea Housing Finance Corporation stated, "The rapid increase in new subscribers is due to the rise in pension amounts and the relaxation of eligibility requirements. We will continue to improve the program to ensure it serves as a stable source of income for retirees."
The home pension program allows individuals to maintain ownership of their homes while receiving pension payments, and there is no obligation for subscribers or their heirs to repay any amount exceeding the home's value. If there are remaining funds after the home is sold following the subscriber's death, those funds will be returned to the heirs.
* This article has been translated by AI.
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