The balance of Korea Housing Finance Corporation’s housing credit guarantee indemnification bonds exceeds KRW 2.8 trillion… More than doubled in 6 years

(Seoul = Yonhap News) Reporter Doheun Lee = The balance of Korea Housing Finance Corporation's (HF) housing credit guarantee indemnity bonds was found to have exceeded 2.8 trillion won in July.

Compared to the end of 2020, it has more than doubled in about six years, but the recovery rate of indemnification claims appears to remain in the single digits.

According to data submitted by Park Seong-hoon of the People's Power Party, a member of the National Assembly's Political Affairs Committee, from the main company on the 23rd, the balance of indemnification bonds as of the end of July this year is 2.8178 trillion won.

The balance decreased from KRW 1.316 trillion at the end of 2020 to KRW 1.2112 trillion at the end of 2022, but increased to KRW 1.4693 trillion at the end of 2023, KRW 1.9198 trillion at the end of 2024, and KRW 2.5532 trillion at the end of 2025.

The balance of indemnification claims at the end of July increased by 114% compared to the end of 2020.

The mortgage company's indemnification claim refers to a claim that the debtor has the right to receive after the corporation repays the customer's deposit loan or home guarantee loan principal and interest to a financial institution.

The size of newly created indemnities also increased significantly.

The annual indemnification amount increased from 248.8 billion won in 2020 to 316.8 billion won in 2022, 589.1 billion won in 2023, 857.9 billion won in 2024, and 1.1851 trillion won in 2025. This is an increase of approximately 4.8 times compared to 2020.

Last July, the amount of indemnification claims accrued was 543.1 billion won, exceeding 45% of the annual amount accrued in 2025.

Although the size of indemnification claims is increasing, the recovery rate has remained in the single digits for over six years.

It stayed in the 6% range for over four years, from 8.14% in 2020 to 6.79% in 2021, 6.54% in 2022, 6.41% in 2023, and 6.86% in 2024, and was 7.34% in 2025 and 8.55% in July of this year.

As the possibility of recovery was low, the amount written off also increased.

The amortization amount of indemnification claims increased approximately 2.3 times from 143.6 billion won in 2020 to 323.8 billion won in 2025. As of July of this year, the amortization amount was 104.8 billion won, equivalent to 32.4% of last year's amortization amount.

Rep. Park Seong-hoon said, "Public guarantees are expanding, but the money not received after an accident is accumulating, and the recovery rate is still in the single digits," and emphasized, "We must not focus only on guarantee supply performance, but thoroughly inspect the after-management system from preventing insolvency to recovering indemnity rights."