ENFORCEMENT DECREE OF THE KOREA HOUSING FINANCE CORPORATION ACT

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters delegated by the Korea Housing Finance Corporation Act and those necessary for the enforcement thereof.

[This Article Wholly Amended on Jun. 22, 2012]

Article 1-2(Scope of quasi-housing) #

"Quasi-housing prescribed by Presidential Decree" in subparagraph 8b of Article 2 of the Korea Housing Finance Corporation Act (hereinafter referred to as the "Act") means any of the following subparagraphs: <Amended on Aug. 11, 2016>

3. Where a lessor, who has leased (including a lease on a deposit basis, but excluding a sublease; hereafter the same shall apply in this Article) the housing under the provisions, with the exception of the items, of subparagraph 3 of Article 2 of the Act or the quasi-housing under subparagraph 8b of that Article, takes out a loan from a financial institution to pay a lease security deposit back to the lessee for any of the following reasons:

2. An officetel under subparagraph 4 of Article 4 of the Enforcement Decree of the Housing Act.

[This Article Added on Jun. 22, 2012]

Article 2(Scope of workers) #

(1) "Workers prescribed by Presidential Decree" in subparagraph 8d of Article 2 of the Act means nationals of the Republic of Korea falling under any of the following subparagraphs; provided, persons who hold the right of permanent residence in a foreign country under foreign Acts shall be excluded:

1. Persons employed by and working for the State, local governments, public organizations, profit-making or non-profit corporations and organizations and other business entities, with the combined total annual income of whom and whose spouse being 25 million won or less;

2. Persons for whom a business proprietor or workers' association under the Labor Standards Act confirms the continued employment from among daily workers under Article 20 of the Enforcement Decree of the Income Tax Act, and whose daily remuneration is 100,000 won or less;

3. Persons employed by a resident under Article 3(1)14 of the Foreign Exchange Transactions Act and working abroad;

4. Persons employed by a non-resident (including a foreign government) under Article 3(1)15 of the Foreign Exchange Transactions Act and working abroad, for whom the competent Minister or the president of the Korea International Cooperation Agency established under the Korea International Cooperation Agency Act confirms such fact as prescribed by Prime Ministerial Decree;

5. Persons employed by foreign governments, international organizations or foreign corporations and working in offices located in the Republic of Korea, with the combined total annual income of whom and whose spouse being 25 million won or less.

(2) The total annual income under paragraph (1)1 and 5 shall be calculated by using the methods of calculating total annual income under Article 100-3(1) of the Enforcement Decree of the Restriction of Special Taxation Act.

[This Article Wholly Amended on Jun. 22, 2012]

Article 3(Credit guarantee) #

"Cases prescribed by Presidential Decree" in subparagraph 8e of Article 2 of the Act means any of the following cases: <Amended on Mar. 31, 2020; Aug. 31, 2023; Oct. 4, 2023; Aug. 12, 2025>

1. Where any of the following persons recognized by the President (hereinafter referred to as the "president") of the Korea Housing Finance Corporation (hereinafter referred to as the "Corporation") as the one potentially capable of improving his or her ability to repay his or her obligations in the future borrows a loan from a financial institution in order to fulfill a liability for reimbursement (referring to a liability for reimbursement to which the Corporation acquired the right by subrogation as a result of its performance of the person's liability on his or her behalf; hereinafter the same shall apply):

a. The primary obligor of such liability for reimbursement;

b. Any person who assumed such liability for reimbursement;

c. Other persons related to such liability for reimbursement;

2. Where a special purpose company, etc. for asset-backed securitization under Article 3(1) of the Asset-Backed Securitization Act holds bonds issued by a housing business entity (including a contractor under subparagraph 13 of Article 2 of the Framework Act on the Construction Industry) as a securitized asset for any of the following purposes:

a. Issuance of asset-backed securities;

b. Credit extension by a financial institution to the specialized securitization company;

3. Where a lessor, who has leased (including a lease on a deposit basis, but excluding a sublease; hereafter the same shall apply in this Article) the housing under the provisions, with the exception of the items, of subparagraph 3 of Article 2 of the Act or the quasi-housing under subparagraph 8b of that Article, takes out a loan from a financial institution to pay a lease security deposit back to the lessee for any of the following reasons:

a. Expiration of the term of a lease;

b. Termination of the lease contract upon agreement between the lessor and lessee;

c. Termination of a lease under Article 6-2 of the Housing Lease Protection Act;

d. Termination of a lease for reasons attributable to the lessee;

4. Where a lessee of a lease contract for the housing under the provisions, with the exception of the items, of subparagraph 3 of Article 2 of the Act or for the quasi-housing under subparagraph 8b of that Article applies for a guarantee for the return of the lease deposit.

Article 3-2(Means of annuity payments) #

(1) "Means of annuity payment prescribed by Presidential Decree" in the former part of subparagraph 8-2 of Article 2 of the Act means any of the following means: <Amended on May 31, 2013; Apr. 25, 2016; Sep. 28, 2018; May 4, 2021; Feb. 18, 2025>

1. Monthly payments for living expenses of senior citizens during the lifetime of a homeowner;

2. Monthly payments for living expenses of senior citizens during the period of time chosen by a homeowner;

3. Combination of subparagraph 1 and one of the following:

a. Payments where a homeowner is paid a certain amount of money occasionally within 70/100 of the ceiling on reverse annuity mortgage loans under Article 9(4)2 of the Act (hereinafter referred to as "loan ceiling" in this paragraph) for the following purposes: In such cases, the total amount paid for the purposes under subparagraphs (1) through (3) and 5) shall be limited to within 50/100 of the loan ceiling.

1) Paying the unpaid balance of a loan taken out on the relevant house;

2) To pay a lease security deposit back to the lessee of the relevant house in accordance with the lease contract under subparagraph 3 of Article 3;

3) To repay the balance of the amount borrowed if the homeowner or the homeowner's spouse meets all of the following requirements;

4) To pay your contribution for the expenses of projects or activities where the relevant housing is subject to any of the following projects or activities;

5) Public announcement determined by the president of the Corporation and posted on its website, including expenses for medical treatment, education and house maintenance:

b. Payments where a homeowner is paid a certain amount of money within 90/100 of the loan ceiling for the purposes under item a1) through 3).

4. Combination of subparagraph 2 and subparagraph 3a;

5. Payments where a homeowner is paid a certain amount of money within the loan ceiling for the purpose under subparagraph 3a1), and he or she is started to be paid from the balance of the ceiling on reverse annuity mortgage loans from the age of 60 based on the means prescribed in subparagraph 1 or 2.

(2) "Age prescribed by Presidential Decree" in the latter part of subparagraph 8-2 of Article 2 of the Act means 55 years old; provided, it means 50 years old in the case of the purchase, which was made between June 1 of 2013 and May 31 of 2014 under the means of paragraph (1)5, based on a house prescribed by the Housing Finance Management Committee under Article 9(1) of the Act. <Amended on May 31, 2013; Mar. 31, 2020>

Article 4(Housing business entity) #

"Person prescribed by Presidential Decree" in subparagraph 9 of Article 2 of the Act means any of the following persons: <Amended on Aug. 11, 2015; Dec. 28, 2015; Aug. 11, 2016>

1. Any of the following persons:

a. A project proprietor under subparagraph 10 of Article 2 of the Housing Act (limited to persons who undertakes the relevant project after obtaining approval for the housing construction project plan under Article 16 of the said Act);

b. Any person who implements a housing construction project for a number of houses less than that prescribed by Article 14(1) of the Enforcement Decree of the Housing Act;

c. Any person who constructs a house and a facility other than a house as a same building without obtaining approval for the plans for the housing construction project in accordance with Article 27(4) of the Enforcement Decree of the Housing Act;

d. A trust business entity (referring to a trust business entity under the Article 8(7) of the Financial Investment Services and Capital Market Act) which has acquired the ownership of or hold title to the relevant housing construction site and actually carries on housing construction projects by raising fund to develop the site, and any person who has concluded a trust contract to develop the site;

2. An rental business entity registered in accordance with Article 5 of the Special Act on Private Rental Housing or a public housing business entity under Article 4 of Special Act on Public Housing who purchases houses with the purpose of rental service.

[This Article Wholly Amended on Jun. 22, 2012]

Article 5(Financial institutions) #

"Person prescribed by Presidential Decree" in subparagraph 11m of Article 2 of the Act means any of the following persons:

1. Community credit cooperatives under the Community Credit Cooperatives Act;

2. Credit unions under the Credit Unions Act;

3. Regional associations and associations by item under the Agricultural Cooperatives Act;

4. Fisheries cooperatives by district and by business sector under the Fisheries Cooperatives Act;

5. Regional associations and specialized associations under the Forestry Cooperatives Act.

[This Article Wholly Amended on Jun. 22, 2012]

Article 6(Establishment registration) #

(1) The incorporation registration of the Corporation under Article 7 of the Act shall be made within 2 weeks from the date when the capital is first paid-in. <Amended on Jan. 21, 2025>

(2) Matters for the establishment registration under paragraph (1) shall be set out under each of the following subparagraphs:

1. Purposes;

2. Title;

3. Location of the main office;

4. Capital;

5. Means of contribution and the amount of paid-in capital;

6. Branch offices or business offices;

7. The name, resident registration number and address of the president;

8. The names, and addresses of the vice president, directors (including outside directors; hereinafter the same shall apply) and the auditor;

9. Methods of public announcement.

[This Article Wholly Amended on Jun. 22, 2012]

Article 7(Establishment registration of branch offices) #

Where the Corporation establishes a branch or sub-branch, it shall register the name, location, and date of establishment of the branch or sub-branch at the location of the main office within 2 weeks after such establishment.

[This Article Wholly Amended on Jan. 21, 2025]

Article 8(Registration of relocation) #

(1) Where the Corporation relocates its main office, it shall register the new location and the date of relocation at the former or the new location of the office within two weeks after such relocation.

(2) Where the Corporation relocates its branch or sub-branch, it shall register the new location and the date of relocation at the location of its main office within 2 weeks after the relocation.

[This Article Wholly Amended on Jan. 21, 2025]

Article 9(Registration for changes) #

Where any matter registered under each subparagraph of Article 6(2) or Article 7 is changed (excluding cases falling under the registration of transfer under Article 8), the Corporation shall register such change at the location of its main office within 2 weeks after the change.

[This Article Wholly Amended on Jan. 21, 2025]

Article 10(Appointment of agent) #

(1) Where the Corporation appoints an agent under Article 19(1) of the Act, the Corporation shall register the following matters at the location of its main office within 2 weeks after the appointment. This shall also apply where the registered matters are changed: <Amended on Jan. 21, 2025>

1. The name, resident registration number and address of the agent;

2. Details on restriction, in the case of restricting the authority of the agent.

(2) An employee who can be appointed as a juridical agent of the president in accordance with Article 19(2) of the Act shall have at least two years of experience in trial-related affairs.

[This Article Wholly Amended on Jun. 22, 2012]

Article 11(Calculation of registration period) #

Where any of the matters on the Corporation to be registered under this Decree requires authorization or approval of the Financial Services Commission, the registration period shall be calculated from the date on which documents on such authorization or approval arrive.

[This Article Wholly Amended on Jun. 22, 2012]

Article 12(Applicants for registration) #

(1) The registration for establishment under Article 6 shall be made by the joint request of members for establishment and the registration under Articles 7 through 10 shall be made upon request of the president.

(2) The written application for registration under Articles 6 through 10 shall be accompanied by documents evidencing the respective grounds.

[This Article Wholly Amended on Jun. 22, 2012]

Article 12-2(Limitation on loan amount) #

"Amount prescribed by Presidential Decree" in Article 9(3)2 of the Act means 500 million won.

[This Article Added on Apr. 6, 2009]

[Previous Article 12-2 moved to Article 12-3 <Apr. 6, 2009>]

Article 12-3(Criteria for guarantee of reverse annuity mortgage) #

"Matters prescribed by Presidential Decree" in Article 9(4)4 of the Act means each of the following subparagraphs:

1. The interest rates required to calculate the amount (hereinafter referred to as "reverse annuity mortgage"), which is paid monthly or occasionally to the homeowner in accordance with each subparagraph of Article 3-2(1);

2. The probability of death of a prospective user of guarantee services for reverse annuity mortgages and his or her spouse.

[This Article Wholly Amended on Jun. 22, 2012]

Article 13(Operation of Housing Finance Management Committee) #

(1) The meeting of the Housing Finance Management Committee (hereinafter referred to as the "Committee") shall be convened by the chairperson pursuant to its articles of incorporation in accordance with Article 11(5) of the Act.

(2) "Core capital and supplementary capital prescribed by Presidential Decree" in Article 31(1) of the Act means each of the following determined by the Financial Services Commission; provided, those which do not contribute to substantial replenishment of the capital, including the Corporation's goodwill, and are prescribed by the Financial Services Commission shall be excluded:

(3) Members who are present at any meeting of the Committee may be paid allowances within budgetary limits; provided, the forgoing shall not apply where the relevant public officials have attended any meeting of the Committee directly in connection with their official duties.

(4) Except as provided in this Decree, other matters necessary for the operation of the Committee shall be determined by the chairperson of the Committee after resolution of the Committee.

[This Article Wholly Amended on Jun. 22, 2012]

Article 14(Mortgage securitization plan) #

"Matters prescribed by Presidential Decree" in Article 23(2)7 of the Act means any of the following:

1. Matters on the financial institution which has transferred mortgage-backed claims;

2. Matters on the protection of investors of mortgage-backed bonds or mortgage-backed securities;

3. Where the Corporation intends to borrow or manage financial resources with regards to mortgage securitization, the plan thereon.

[This Article Wholly Amended on Jun. 22, 2012]

Article 15(Registration on transfer of mortgage-backed claims) #

(1) The Corporation shall appoint a person in charge of keeping and managing a contract on transfer, trust or return (hereinafter referred to as "transfer, etc.") of and certificate of registration, notification of information on registration or registration card, or other kinds of documentary evidence of mortgage-backed claims, in accordance with Article 24(5) of the Act.

(2) Where the Corporation appoints a person other than its executive officers or employees to be in charge of management in accordance with paragraph (1), it shall designate a person other than a financial institution who has transferred such mortgage-backed claims thereto; provided, the forgoing shall not apply where the relevant financial institution, which has transferred such mortgage-backed claims, keeps and manages the original document and a person, other than such financial institution, or the Corporation keeps and manages a copy thereof (including electronic documents) so that the Financial Services Commission or investors can inspect it.

[This Article Wholly Amended on Jun. 22, 2012]

Article 16(Equity capital) #

"Core capital and supplementary capital prescribed by Presidential Decree" in Article 31(1) of the Act means each of the following determined by the Financial Services Commission; provided, those which do not contribute to substantial replenishment of the capital, including the Corporation's goodwill, and are prescribed by the Financial Services Commission shall be excluded:

1. Core capital: Actual net assets of the Corporation, such as capital and retained earnings, which have the characteristic of permanency;

2. Supplementary capital: Capital having characteristics corresponding to those stated subparagraph 1, such as subordinated claims, which is usable to make up for the loss arising from business activities of the Corporation.

[This Article Wholly Amended on Jun. 22, 2012]

Article 17(Matters to be entered in mortgage-backed securities) #

"Matters prescribed by Presidential Decree" in Article 32(6)6 of the Act means the following matters:

1. Names or titles of beneficiaries, in the case of registered type;

2. Time and place for distributing profits;

3. Where the agreement on the preservation of the principal or interest is concluded, the details thereof;

4. Details of a payment guarantee, if any;

5. Where the means of operating mortgage-backed claims are determined, the details thereof.

[This Article Wholly Amended on Jun. 22, 2012]

Article 18(Acquisition of mortgage-backed securities) #

(1) The Corporation may acquire mortgage-backed securities by using assets which are not subject to mortgage securitization for the smooth issuance of mortgage-backed securities and stable operation of surplus funds in accordance with Article 32(7) of the Act.

(2) Where the Corporation acquires mortgage-backed securities in accordance with paragraph (1), the acquisition value shall be based on the transaction price on the securities market or on KOSDAQ under the Financial Investment Services and Capital Markets Act; provided, where the relevant mortgage-backed securities have not been listed on the securities market or on KOSDAQ, the acquisition value shall be the value obtained by dividing the total amount of mortgage-backed claims constituting the underlying basis for the issuance thereof (referring to the appraised amount of such mortgage-backed securities as at the time of acquisition) by the total number of mortgage-backed securities (excluding those already repaid as at the time of acquisition of mortgage-backed securities).

[This Article Wholly Amended on Jun. 22, 2012]

Article 19(Exceptions to issuance of mortgage-backed securities) #

"Any reason prescribed by Presidential Decree" in subparagraph 2 of Article 33 of the Act means any of the following reasons:

1. Where the mortgage-backed claims are extinguished due to the repayment by debtor prior to maturity or for any other reason;

2. Where the creditor exercises mortgages (including a right of fixed collateral; hereinafter the same shall apply) due to the non-performance of liabilities by the debtor, or the mortgages concerned have been extinguished due to the destruction or loss, etc. of the mortgaged house;

3. Where the debtor of mortgage-backed claims has not repaid liabilities within the maturity date in commercial transaction, including financial transactions and is prescribed by the Financial Services Commission;

4. Where the decision of seizure, provisional seizure, disposition on default or temporary disposition is made with regard to mortgage-backed claims or the mortgaged house which secures them.

[This Article Wholly Amended on Jun. 22, 2012]

Article 20(Granting of credit for financial institutions) #

(1) The Corporation may lend funds to financial institutions so that they use them for loans giving rise to long-term mortgage-backed claims with a maturity of 10 years or longer or may purchase securities issued by financial institutions in accordance with the former part of Article 35(1) of the Act.

(2) "Causes prescribed by Presidential Decree" in Article 43-5(1) of the Act means any of the following causes:

(3) Where the limit under the main clause of paragraph (2) has been exceeded pursuant to the proviso of that paragraph, it shall be brought within the limit under the main clause of paragraph (2) within one year from the date when such limit has been exceeded; provided, where an unavoidable cause exists, including non-arrival of the term for redemption of extended credit which has already been provided, the Committee may extend the term by prescribing it.

[This Article Wholly Amended on Jun. 22, 2012]

Article 21(Provision and use of information on debtors) #

When a financial institution or the Corporation provides information on the capacity of the debtor to repay debts in accordance with Article 36(1) of the Act, it shall use electronic data or other means equivalent thereto; provided, information on the capacity of the debtor to repay debts, which includes personal identification information, including name and resident registration number (in the case of foreigners, the relevant alien registration number or passport number) of the debtor, shall not be provided to any person other than transferee.

[This Article Wholly Amended on Jun. 22, 2012]

Article 22(Fulfillment of credit guarantee liability) #

(1) "Ground for not fulfilling obligations prescribed by Presidential Decree" in Article 38(1) of the Act means cases where the period determined by the president within the scope of three months to one year and six months has passed since the date of default (including cases where the benefit of the term has been forfeited) by the primary debtor as to his or her obligation to a creditor.

(2) Where the primary debtor falls under any of the following subparagraphs, a creditor may demand payment of a credit guarantee liability from the Corporation, notwithstanding paragraph (1): <Amended on Mar. 31, 2020; Aug. 31, 2023>

1. When the primary debtor has become bankrupt or been dissolved;

2. When the primary debtor has discontinued his or her business for at least six months;

3. When it is deemed that the recovery of loan claims is impossible due to grounds, other than those referred to in subparagraphs 1 and 2;

4. When, in cases of the guarantee under subparagraph 4 or 5 of Article 3, the period set by the president within three months has elapsed with the lessor failing to fulfill the obligation to return a lease security deposit.

(3) When a creditor demands payment of a credit guarantee liability to the Corporation, he or she shall verify the facts which give rise to such obligation.

[This Article Wholly Amended on Jun. 22, 2012]

Article 23(Scope of subordinate debt obligations) #

"Subordinate debt obligations prescribed by Presidential Decree" in Article 38(2) of the Act means the total amount of the following amounts:

1. The interest on the principal obligation calculated at the interest rate applicable to the original contract period, until the date on which the Corporation fulfills its credit guarantee obligations;

2. The expenses prescribed by the president from among those paid by a creditor for the recovery of claims.

[This Article Wholly Amended on Jun. 22, 2012]

Article 24 #

Deleted. <Mar. 30, 2015>

Article 25(Selling of claim for reimbursement) #

"Persons prescribed by Presidential Decree" in Article 39(4)3 of the Act means any of the following persons: <Amended on Feb, 17, 2022>

1. The Korea Asset Management Corporation under the Act on the Establishment of Korea Asset Management Corporation;

2. A special purpose company for asset-backed securitization under the Asset-Backed Securitization Act.

[This Article Wholly Amended on Jun. 22, 2012]

Article 26(Guarantee fees) #

(1) "Guarantee fees prescribed by Presidential Decree" in Article 41(1) of the Act means the amount calculated by multiplying the amount of credit guarantee service which the Corporate provides by the rate of guarantee fees determined by the board of directors of the Corporate (hereinafter referred to as the "board of directors").

(2) In the case of collecting guarantee fees in accordance with Article 41(1) of the Act, different rates of guarantee fees may be applied in consideration of each of the following matters:

1. Credit rating of the person who intends to use credit guarantee services;

2. Scale of the amount subject to credit guarantee;

3. Period of credit guarantee.

(3) The additional guarantee fees under Article 41(2) of the Act shall be the amount calculated by multiplying the non-performing amount from among the amount for which the Corporate provides credit guarantee services, by the rate determined by the board of directors within the scope not exceeding 25/1000 per annum.

(4) The guarantee fees in arrears under Article 41(3) of the Act shall be the amount calculated by multiplying the unpaid guarantee fees by 10/100 per annum.

(5) Detailed matters necessary to collect guarantee fees, additional guarantee fees, guarantee fees in arrears under paragraphs (1) through (4) shall be prescribed by the president after the resolution of the board of directors.

[This Article Wholly Amended on Jun. 22, 2012]

Article 27(Penalties) #

Penalties levied under Article 42 of the Act shall be the amount calculated by multiplying the amount whose credit guarantee obligation is discharged by the Corporation by the rate prescribed by the board of directors within the scope not exceeding 20/100 per annum in consideration of the interest rates for loans in arrears applied by financial institutions.

[This Article Wholly Amended on Jun. 22, 2012]

Article 28(Ceiling on credit guarantees) #

(1) The ceiling on the aggregate of credit guarantees of the Housing Finance Credit Guarantee Fund under Article 43(1) of the Act (excluding the Account of Guarantee for Reverse Annuity Mortgages under Article 59-2 of the Act; hereinafter referred to as the "Fund") shall be 30 times the aggregate amount of the subparagraphs of Article 43(1) of the Act (hereinafter referred to as "financial resources for the aggregate of credit guarantees"). In such cases, if the identical person simultaneously uses the guarantee for borrowing funds for lease and the guarantee under subparagraph 4 of Article 3 for the same lease contract, the overlapping amount shall not be included in the aggregate of credit guarantees. <Amended on Mar. 31, 2020>

(2) The maximum limit of credit guarantees provided by the Corporation to identical persons or enterprises under Article 43(2) of the Act shall be determined according to the following classification: <Amended on Aug. 11, 2015; Sep. 28, 2018; Mar. 31, 2020; Jan. 18, 2022; Aug. 31, 2023>

1. Credit guarantees for the identical person: 500 million won for each type of guarantee; provided, in any of the following cases, the amounts shall be set forth in relevant items;

a. Credit guarantees under subparagraph 4 of Article 3: One billion won;

b. Credit guarantees under subparagraph 5 of Article 3: Three billion won;

2. Credit guarantees for an identical rental business entity under subparagraph 2 of Article 4 shall be as follows:

a. Where the rental business entity is a private individual: One billion won;

b. Where the rental business entity is a corporation: 50 billion won; provided, where the rental business entity is a public housing project operator under Article 4 of the Special Act on Public Housing, it shall be 100 billion won;

3. Credit guarantees for an identical enterprise (a person under subparagraph 2 shall be excluded herefrom, but an individual housing business entity who issues bonds (including a contractor under subparagraph 13 of Article 2 of the Framework Act on the Construction Industry) shall be deemed the identical enterprise where credit guarantee is provided to guarantee the performance of obligations arising in the cases under subparagraph 2 of Article 3): 5/100 of financial resources for the aggregate of credit guarantees; provided, where the Financial Services Commission recognizes that it is unavoidable due to drastic and significant changes in the economic conditions at home and abroad, or that it is particularly necessary for the national economy, credit guarantees may be provided within the scope not exceeding 15/100 of financial resources for the aggregate of credit guarantees.

Article 28-2(Grounds for requesting performance of credit guarantee liabilities for reverse annuity mortgages) #

(1) "Spouse prescribed by Presidential Decree" in Article 43-3(1) of the Act means any spouse who has been in a continuous marital relationship with a person using a guarantee service for reverse annuity mortgages since the contract of guarantee for reverse annuity mortgages was concluded.

(2) "Cause prescribed by Presidential Decree" in Article 43-3(1) of the Act means any the following: <Amended on Aug. 11, 2015; Aug. 11, 2016; Feb. 9, 2018; Sep. 28, 2018, May 4, 2021; Jan. 18, 2022>

1. Where the person who has used a guarantee service for reverse annuity mortgages and the spouse under paragraph (1) are all deceased;

2. Where the spouse under paragraph (1) has failed to complete the registration for transfer of ownership (excluding guarantees for reverse annuity mortgages under a trust contract; hereafter the same shall apply in this subparagraph) of a mortgaged house (hereinafter referred to as "mortgaged house") under Article 43-4(1) of the Act and the acception of a pecuniary liability of the fund for livelihood of senior citizens against financial institutions within six months from the death of the person who has used a guarantee service for reverse annuity mortgages; provided, where he or she has joined an association established to conduct any of the following projects or acts (including cases of transferring the ownership to a trust business entity designated as a project operator of a project under item a), or has given consent for remodeling under Article 66(1) or (2) of the Housing Act and acts under Article 35(1) of the Multi-Family Housing Management Act (hereafter referred to as "joining an association, etc." in this paragraph) before his or her death, this shall not apply if the spouse has failed to complete the registration for transfer of ownership and the acception of a pecuniary liability for the period determined by the president:

a. Housing redevelopment projects or housing reconstruction projects under subparagraph 2b or c of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments and small-scale housing improvement projects under the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement;

b. Remodeling under subparagraph 25 of Article 2 of the Housing Act;

3. Where the person who has used a guarantee service for reverse annuity mortgages and the spouse under paragraph (1) have transferred the resident registration from the mortgaged house into another place; provided, any of the following cases shall be excluded:

Article 28-3(Methods of exercising mortgage and trust beneficiary rights) #

The methods of exercising mortgages and the trust beneficiary rights under Article 43-4(3) of the Act shall be as follows:

1. Methods of exercising mortgages: Methods prescribed by the Civil Act, the Civil Execution Act, or other relevant statutes or regulations;

2. Methods of exercising trust beneficiary rights: Methods prescribed by the trust contract, the Trust Act, the Civil Execution Act, or other relevant statutes or regulations.

[This Article Wholly Amended on May 4, 2021]

Article 28-4(Acquisition by transfer of claims for reverse annuity mortgages) #

"Causes prescribed by Presidential Decree" in Article 43-5(1) of the Act means any of the following causes:

1. Where the principal and interest of reverse annuity mortgage loans already paid exceeds the value of the mortgaged house;

2. Where a financial institution is unable to pay reverse annuity mortgages to any person who has used a guarantee service for reverse annuity mortgages due to the bankruptcy of the relevant financial institution under the Debtor Rehabilitation and Bankruptcy Act or other grounds.

[This Article Wholly Amended on Jun. 22, 2012]

Article 28-5(Grounds for exceptional establishment of mortgages) #

"Cases prescribed by Presidential Decree" in the in the provisions, with the exception of the subparagraphs, of Article 43-7(1) of the Act means any of the following cases: <Amended on Sep. 28, 2018>

1. Where any person who has used credit guarantee services performs acts under Article 43-7(1)1 of the Act after establishing a mortgage against a financial institution or the Corporation by setting the amount exceeding the estimated total of the principal and interest of the reverse annuity mortgage loans as the ceiling for prior repayment;

2. Where any person who has used a guarantee service for reverse annuity mortgages leases the mortgaged house with the consent of the Corporation, as determined by the president; provided, the consent of the president is not required, where the person resides in the mortgaged house and leases part of the house while receiving monthly rent without a deposit.

[This Article Wholly Amended on Jun. 22, 2012]

Article 28-6(Supplementary registration) #

(1) The supplementary registration under Article 43-7(2) of the Act shall be effected simultaneously at the time when the establishment registration of mortgages on the mortgaged house is completed.

(2) In the supplementary registration under Article 43-7(2) of the Act, the phrases of "No restricted real right shall be established over this house and this house shall not be subject to any act that restricts the ownership, including seizure, provisional seizure, temporary disposition, lease, without consent of the Korea Housing Finance Corporation under the Korea Housing Finance Corporation Act" shall be stated.

(3) A person who has used credit guarantees services shall, when he or she intends to cancel the supplementary registration under Article 43-7(2) of the Act, obtain consent therefor from the Corporation; provided, where the principal and interests of the reverse annuity mortgage loans are fully repaid, he or she may cancel the supplementary registration without obtaining consent from the Corporation.

[This Article Wholly Amended on Jun. 22, 2012]

Article 28-7(Guarantee fees for reverse annuity mortgages) #

(1) "Rates prescribed by Presidential Decree" in Article 43-8(1) of the Act means the rate of guarantee fees determined by the board of directors, considering the housing inflation rate, the interest rate for computation of annuity, death expectancy, and other relevant factors.

(2) "Rates provided for by Presidential Decree" in Article 43-8(2) of the Act means the rate of guarantee fees determined by the board of directors, considering the housing inflation rate, the interest rate for computation of annuity, death probability, and other relevant factors.

(3) Where the board of directors determines the rate of initial guarantee fees and the rate of guarantee fees pursuant to paragraphs (1) and (2), it shall ensure that equity is maintained between the persons to whom the guarantee for reverse annuity mortgage is provided.

(4) The initial guarantee fees and guarantee fees under Article 43-8(1) and (2) of the Act shall be paid by the financial institution at the expense of the person who has used a credit guarantee service on the date prescribed by the contract of guarantee for reverse annuity mortgages to the Corporation.

[This Article Wholly Amended on Jun. 22, 2012]

Article 28-8(Ceiling on aggregate of guarantee for reverse annuity mortgages) #

"Amount prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 43-9 of the Act means 30 times the amount calculated by adding up the amounts under the subparagraphs of Article 43-9 of the Act.

[This Article Wholly Amended on Jun. 22, 2012]

Article 28-9(Price of housing subject to guarantee for reverse annuity mortgages) #

"Price prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 43-11(1) of the Act means 1.2 billion won:

[This Article Added on Oct. 4, 2023]

[Previous Article 28-9 moved to Article 28-10 <Oct. 4, 2023>]

Article 28-10(Exclusive account for reverse annuity mortgages) #

(1) Where a financial institution receives an application for use of an exclusive account for reverse annuity mortgages under the main clause of Article 43-13(1) of the Act (hereinafter referred to as "exclusive account for reverse annuity mortgages") from a person receiving reverse annuity mortgages, it shall verify the following matters:

1. Whether the relevant account is the account of the person receiving the reverse annuity mortgages;

2. Whether using the relevant account is restricted under paragraph (2) 2 or 3.

(2) Where a financial institution cannot transfer reverse annuity mortgages to an exclusive account for reverse annuity mortgages due to the following reasons pursuant to the proviso of Article 43-13(1), the financial institution may either pay cash directly to the person receiving the reverse annuity mortgages or pay into another savings account requested by the person:

1. Where it is difficult to transfer funds to the exclusive account for reverse annuity mortgages due to information and communications malfunction;

2. Where using the exclusive account for reverse annuity mortgages is restricted under the Special Act on the Prevention of Loss Caused by Telecommunications-Based Financial Fraud and Refund for Loss or other relevant statutes or regulations;

3. Where using the exclusive account for reverse annuity mortgages is restricted due to the closure, suspension of business, etc. of the financial institution in which the exclusive account for reverse annuity mortgages is opened.

[This Article Added on May 4, 2021]

[Moved from Article 28-9 <Oct. 4, 2023>]

Article 29(Issuance of student loan-backed securities) #

`Articles 14, 15, 17, 18 and 21 shall apply mutatis mutandis to student loan-backed securities issued by the Corporation. In such cases, "mortgage-backed claims" shall be construed as "student loan-backed claims," and "mortgage-backed securities" as "student loan-backed securities."

[This Article Wholly Amended on Jun. 22, 2012]

Article 30(Entrustment of business of Financial Services Commission) #

The Financial Services Commission may, in accordance with Article 44 of the Act, entrust all or part of any of the following business to the Governor of the Financial Supervisory Service:

1. Registration, etc. of a mortgage securitization plan under Article 23 of the Act (including cases where that Article applies mutatis mutandis in Article 46 of the Act);

2. Registration, etc. of transfer, etc. of mortgage-backed claims under Article 24 of the Act (including cases where that Article applies mutatis mutandis in Article 46 of the Act);

3. Disclosure of the documents on registration, etc. pursuant to Article 29 of the Act (including cases where that Article applies mutatis mutandis in Article 46 of the Act).

[This Article Wholly Amended on Jun. 22, 2012]

Article 31(Entrustment of business affairs of corporation) #

(1) In accordance with Article 45(7) of the Act, the Corporation may entrust the business affairs according to any of the following classifications to persons prescribed in the subparagraphs of paragraph (1) of that Article: <Amended on Aug. 4, 2020; Feb. 17, 2022>

1. Financial institutions: Affairs under Article 22(1)7 through 10, 12 and 14 of the Act (limited to business incidental to subparagraphs 7 through 10 and 12 of that paragraph);

2. The Korea Asset Management Corporation under the Act on the Establishment of Korea Asset Management Corporation, and credit information companies and claims collection agencies under the Credit Information Use and Protection Act: Affairs regarding the exercise of rights to demand a reimbursement among the affairs under Article 22(1)8, 10, and 14 of the Act.

(2) Where the Corporation intends to entrust business affairs pursuant to paragraph (1), it shall make a prior report to the Financial Services Commission.

[This Article Wholly Amended on Jun. 22, 2012]

Article 32(Distribution of earnings) #

Where the Minister of Economy and Finance grants approval on the allotment of earnings for investors under Article 50(1)2 of the Act, the ratio of such distribution shall not exceed 15/100. <Amended on Dec. 30, 2025>

[This Article Wholly Amended on Jun. 22, 2012]

Article 33(Methods of creating fund) #

"Financial resources prescribed by Presidential Decree" in Article 56(1)8 of the Act means any of the following borrowings:

1. Borrowings from the Government;

2. Borrowings from foreign governments, international institutions, etc.

[This Article Wholly Amended on Jun. 22, 2012]

Article 34(Uses of fund) #

"Uses prescribed by Presidential Decree" in subparagraph 5 of Article 57 of the Act means any of the following subparagraphs:

1. Projects for advising and providing information on houses;

2. Projects for advising on business administration or techniques for a housing business entity, etc.

[This Article Wholly Amended on Jun. 22, 2012]

Article 35(Management and operation of fund) #

"Means prescribed by Presidential Decree" in Article 58(2)2 of the Act means any of the following subparagraphs:

1. Purchasing state bonds, public bonds or other bonds whose payment is guaranteed by the Government;

2. Subscribing or purchasing stocks (including investment certificates), debentures or other securities; provided, this shall be limited to those approved by the Financial Services Commission.

[This Article Wholly Amended on Jun. 22, 2012]

Article 35-2(Methods of creating accounts for guarantee of reverse annuity mortgages) #

"Financial resources prescribed by Presidential Decree" in Article 59-3(1)8 of the Act means any of the following borrowings:

1. Borrowings from the Government;

2. Borrowings from foreign governments, international institutions, etc.

[This Article Wholly Amended on Jun. 22, 2012]

Article 35-3(Uses of account for guarantee of reverse annuity mortgage) #

"Uses prescribed by Presidential Decree" in subparagraph 6 of Article 59-4 of the Act means any of the following subparagraphs:

1. Providing counselling and support for a guarantee for reverse annuity mortgages;

2. Providing information on the safe use of reverse annuity mortgages and offering counselling and support for the stabilization of livelihood of persons who have used credit guarantee services.

[This Article Wholly Amended on Jun. 22, 2012]

Article 36(Supervision for sound administration) #

(1) The Financial Services Commission shall supervise the affairs of the Corporation in accordance with Article 60(1) of the Act. In such cases, the supervision over soundness by the Financial Services Commission shall be limited to matters not subject to audits and inspections under Article 22 of the Board of Audit and Inspection Act and inspections on job performance under Article 24 of that Act.

(2) The Financial Services Commission may prescribe details necessary for the supervision under paragraph (1), including guidelines for business supervision. In such cases, the following matters shall be included in the guidelines for business supervision:

1. Matters on the appropriateness of capital;

2. Matters on the soundness of assets;

3. Matters on the securing of liquidity;

4. Other matters deemed necessary for securing soundness in business administration.

[This Article Wholly Amended on Jun. 22, 2012]

Article 37(Inspection of documents) #

When the Financial Services Commission entrusts affairs regarding inspection to the Governor of the Financial Supervisory Service in accordance with Article 61(2) of the Act, such entrustment shall be made by documents stating the purposes and scope of inspection, etc. in detail.

[This Article Wholly Amended on Jun. 22, 2012]

Article 37-2(Processing of personally identifiable information) #

The Financial Services Commission (including a person entrusted with the affairs of the Financial Services Commission pursuant to Article 61(2) of the Act and Article 37 of this Decree) and the Corporation (including a person entrusted with the affairs of the Corporation pursuant to Article 45 of the Act and Article 31 of this Decree) may process data including resident registration numbers, passport numbers, driver's license numbers, or alien registration numbers, under Article 19 of the Enforcement Decree of the Personal Information Protection Act, where unavoidable to perform the following affairs: <Amended on Mar. 31, 2020; Jun. 7, 2022; Aug. 31, 2023>

1. Affairs concerning mortgage securitization and holding of bonds under Articles 22(1)1 and 2, 22-2, 23 through 25 (including cases applied mutatis mutandis under Article 46(2) of the Act), 27, 29 and 30 (including cases applied mutatis mutandis under Article 46(2) of the Act) and 36(1)1 of the Act;

2. Affairs concerning assessment and actual examination on housing mortgage-backed claims or student loan-backed claims under Article 22(1)5 of the Act;

3. Affairs concerning credit guarantee under Articles 22(1)7 and 37 of the Act (including information of the lessor, in cases of guarantee under subparagraph 4 of Article 3 and information of the lessee, in cases of guarantee under subparagraph 5 of Article 3);

4. Affairs concerning performance of credit guarantee obligations and exercise of the right to demand a reimbursement under Articles 22(1)8, 38, and 39 of the Act (including information of the lessor, in cases of guarantee under subparagraph 4 of Article 3 and information of the lessee, in cases of guarantee under subparagraph 5 of Article 3);

5. Affairs concerning guarantee of the reverse annuity mortgages under Articles 22(1)9 and 43-2 of the Act;

6. Affairs concerning performance of credit guarantee obligations for the reverse annuity mortgages and exercise of the right to demand a reimbursement under Articles 22(1)10, 43-3, 43-4, and 43-10 of the Act;

7. Affairs concerning takeover and holding of reverse annuity mortgages claims, and payment, etc. of annuities under Articles 22(1)11 and 43-5 of the Act;

8. Affairs concerning credit surveys and comprehensive management of credit information under Article 22(1)12 of the Act;

9. Affairs concerning investigation and research of housing finance, and collection and preparation of statistical data under Article 22(1)13 of the Act;

Article 37-3(Request for provision of data) #

(1) "Persons prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 64(1) of the Act means the following persons:

1. Household members of housing finance users under Article 64(1) of the Act (hereinafter referred to as "housing finance user");

2. Joint guarantors and persons who have pledged their property as security for debts arising from the use of housing finance by the housing finance users;

3. Persons to whom the residual property is reverted upon termination of a trust contract under the former part of subparagraph 8-2 of Article 2 of the Act;

4. Other persons related to debts arising from the use of housing finance by the housing finance users, who are prescribed and publicly notified by the Financial Services Commission.

(2) "Public organizations prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 64(1) of the Act means the following institutions:

1. The Government Employees Pension Service under the Public Officials Pension Act;

2. The special post office pension service agency under the Special Post Offices Act;

3. The Korea Teachers Pension under the Pension for Private School Teachers and Staff Act;

4. The Korea Social Security Information Service under the Act on the Use and Provision of Social Security Benefits and Search for Eligible Beneficiaries;

5. The Korea Workers' Compensation and Welfare Service under the Industrial Accident Compensation Insurance Act;

6. Other public organizations having data or information necessary to perform the affairs of the Corporation, which are prescribed and publicly notified by the Financial Services Commission.

(3) Pursuant to Article 64(1) of the Act, the Corporation may request the head of a relevant agency under the provisions, with the exception of the subparagraphs, of that paragraph (hereinafter referred to as "relevant agency") to provide the following data or information:

1. Data or information under Article 64(1)1 of the Act as listed in the following:

a. Family relations to be registered under the Act on Registration of Family Relations;

Article 37-4(Joint use of computerized information data) #

"Information systems prescribed by Presidential Decree, such as the social security information system under Article 37(2) of the Framework Act on Social Security and the Central Control Office of Computerized Information under Article 12 of the Act on Registration of Family Relations" in Article 64-2 of the Act means the following information systems:

1. The Central Control Office of Computerized Information under Article 12 of the Act on Registration of Family Relations;

2. The information management system for the comprehensive real estate records under Article 76-2(2) of the Act on the Establishment and Management of Spatial Data;

3. The social services information system under Article 24-2(1) of the Act on the Use and Provision of Social Security Benefits and Search for Eligible Beneficiaries;

4. The social security information system under Article 37(2) of the Framework Act on Social Security;

5. The national land use information system under Article 12 of the Framework Act on the Regulation of Land Use;

6. Other information systems that manage data or information under Article 64(1) of the Act, which are prescribed and publicly notified by the Financial Services Commission.

[This Article Added on Jun. 7, 2022]

Article 37-5(Request for and provision of financial information) #

(1) Where the Corporation requests that the head of a financial company, etc. (referring to a financial company, etc. under the provisions, with the exception of the subparagraphs, of Article 64(1) of the Act; hereinafter the same shall apply) provide financial information, etc. under Article 64(1)4 of the Act (hereinafter referred to as "financial information, etc.") pursuant to Article 64-3(1) of the Act, it shall request it along with data containing the following matters. In such cases, the request for provision of financial information, etc. may be made through an association, federation, or central association to which the relevant financial company, etc. belongs:

1. Name and resident registration number of a person to give consent;

2. Purpose of and reasons for using the financial information, etc.;

3. Scope and details of the necessary financial information, etc.;

4. Methods of providing the financial information, etc.;

5. Period of retaining or using the financial information, etc.;

6. Safety management measures when retaining or using the financial information, etc.;

7. Personal information of the person in charge or the responsible person at the Corporation, such as the name and position;

8. Other matters necessary for the provision of financial information, etc., which are prescribed and publicly notified by the Financial Services Commission.

(2) Upon receipt of a request under paragraph (1), the head of a financial company, etc. shall provide the following matters to the Corporation pursuant to Article 64-3(2) of the Act. In such cases, the financial information, etc. may be provided through an association, federation, or central association to which the relevant financial company belongs:

1. Name and resident registration number of a person to give consent;

2. Name of the financial company, etc. that provides the financial information, etc.;

3. Name of the financial product and the account number related to the financial information, etc. to be provided;

4. Details of the financial information, etc. requested by the Corporation.

[This Article Added on Jun. 7, 2022]

Article 38(Special cases concerning mortgage loans for smooth securitization) #

"Cases prescribed by Presidential Decree" in Article 66 of the Act means cases where each of the following criteria might be satisfied even if the National Credit Union Federation of Korea under the Credit Unions Act provides the relevant mortgage loans:

1. The ratio of the loan amount received from a financial institution by putting up a house as a security to the price of such house;

2. The limit of loan, within 300 million won, for the house offered to a financial institution as a security;

3. The capacity of a person to repay debts who has loaned from a financial institution by putting up a house as a security, in view of his or her income level.

[This Article Wholly Amended on Jun. 22, 2012]

Article 39 #

Deleted. <Dec. 17, 2008>

Article 40(Scope of employees deemed public officials in application of penalty provisions) #

"Employees of the Corporation prescribed by Presidential Decree" in subparagraph 3 of Article 69 of the Act means employees of the Corporation who are deputy managers or higher in ranking.

[This Article Wholly Amended on Jun. 22, 2012]