Reverse mortgage are booming in Korea, according to a report from Korea’s JoongAngDaily.
The state-run Housing Finance Corporation said in a recent report the number of newly issued reverse mortgage loans rose to 168 in February, up 44% from a year earlier. The amount of reverse mortgage loans supplied hit 202.8 billion won ($181.9 million) in February, up 22% in the same period.
“Retirees now have more years to live after retirement and have to economically support their children, and I think that’s why they are applying for reverse mortgage loans,” said Suh Seung-nam, a Housing Finance official.
Industry officials said more people understand how a reverse mortgage loan works.