As major banks raise their household lending thresholds and market interest rates increase, the popularity of the 'Bogeumjari Loan' in South Korea has surged. According to the Korea Housing Finance Corporation, the new sales amount of the Bogeumjari Loan reached 2.4147 trillion won in January, marking the highest level in 2 years and 2 months after November 2023. Monthly sales peaked at over 2 trillion won at the end of last year and have continued to rise this year, showing a robust demand amidst rising interest rates.

The Bogeumjari Loan is a long-term, fixed-rate housing mortgage provided by the Korea Housing Finance Corporation, designed for couples with an annual combined income of less than 70 million won purchasing homes worth up to 600 million won. The popularity of this loan has increased as the Bank of Korea indicated an end to the rate-cutting cycle earlier this year, which has led to a rise in market interest rates. The five-year bank bond yield rose from 3.499% at the end of December last year to 3.715% by the end of January, making the relatively lower rates of Bogeumjari Loans more attractive.

However, the number of new subscriptions to housing pensions has decreased, with only 939 new contracts in January. This decline followed a gradual increase in late 2023 and was attributed to a delay in people's expectations regarding the rise in housing prices, which has made many hesitant to subscribe to housing pensions. The Korea Housing Finance Corporation noted that factors such as rising housing transactions and increased preferences for fixed-rate loans due to the current economic context led to the surge in Bogeumjari Loan sales, while expectations around housing prices dampened interest in housing pensions.