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FSC to consider offering 40-year mortgages for young home buyers Updated: 2021-01-20 04:11:56 KST

The South Korean government has outlined its economic policy directions and key projects for this year.
The Financial Services Commission released its work plan for the year on Tuesday to address one of the most pressing issues in the country helping more young people get onto the property ladder.

"Like how mortgage loans work abroad, the FSC is to review plans to offer mortgage loans with a maximum term of 40 years and with a smaller down payment."

No details have been provided yet but he added that this year, the FSC is to begin trials of mortgage loans of 30 or 40 years with low interest rates.

"Extending the period of mortgage repayment will help young people buy homes. But it will be more helpful if the ratio of a property's value that people could borrow was increased to say 50 or 60 percent.
Currently, for a property in Seoul priced between six hundred million won and nine hundred million won, people can only borrow 40% of its value.

The Finance Ministry also released its plan on Tuesday saying that one of its key policy directions this year is to reduce the risks and damage caused by the pandemic.
This includes providing financial aid for disinfection work and vaccinations.
The ministry will support efforts to secure enough vaccines by February to inoculate around 56 million people and provide shots for the whole nation free of charge.
Also, the government plans to fully compensate people for any losses due to side effects.

"The big picture of the plan would be to create a system and a pan-governmental body where the causal links between vaccines and any side effects could be monitored. Also, it is to decide on whether to continue inoculating and compensate for damages.

The ministry said it will also financially support small business owners and workers who have been hit hard by the pandemic.
The third round of COVID-19 relief funds will be rolled out before Seollal, South Korea's Lunar New Year holidays.
Eum Ji-young, Arirang News.
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