The Korea Times recently reported that Korea’s Financial Services Commission (FSC) is considering expanding reverse mortgages to ensure its seniors are able to live stable lives after retirement.
According to the article, it’s the regulator is looking at easing conditions for reverse mortgages, which are currently available to those aged 65 or older with a home worth 900 million won or less. The FSC is also contemplating expanding the program to people who are 60 or 55 years old and increasing the amount of money borrowers can receive.
Yoon Ja-young writes that the program was introduced in July 2007 and was modeled after the HECM program in the US, but attracted only 515 people in 2007 and 695 in 2008. “We deemed that the program should be expanded given the economic recession and early retirement following corporate restructuring,” the spokesperson said.