A home pension in Korea is not only a monthly payment. Article 3-2(1) of the KHFC Act Enforcement Decree lets you combine monthly payments with lump-sum withdrawals, and caps them as a share of your loan limit. Withdrawals added to life-long or fixed-term payments are capped at 70% of the loan limit, and within that, uses such as repaying loans, returning a tenant’s deposit or medical bills are capped at 50% in total. The method built around paying off an existing mortgage (item 3(b)) allows up to 90%. Enter the loan limit KHFC gives you and what you need the money for, and the calculator shows whether it fits.
1. Withdrawals up to 70% of the loan limit — for life-long (item 3(a)) and fixed-term (item 4) payments.
2. Loan repayment, deposit return, closing a small business and medical uses share a 50% cap; only redevelopment levies can go past 50% up to 70%.
3. The mortgage-repayment method (item 3(b)) allows up to 90%, for uses 1)–3) only.
Calculator
Updates as you type. Enter amounts in units of 10,000 won (30,000 = 300 million won). The loan limit itself is set by KHFC by age and home value; enter the figure KHFC quotes. It checks only the percentages in the Decree.
Five payment methods — Decree Art. 3-2(1)
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Item 1 | Paid monthly for as long as the owner lives | Life-long |
| Item 2 | Paid monthly for a period the owner chooses | Fixed-term |
| Item 3(a) | Item 1 plus withdrawals within 70/100 of the loan limit for the uses below; uses 1)–3) and 5) within 50/100 in total | Life-long + withdrawals |
| Item 3(b) | Item 1 plus a set amount within 90/100 of the loan limit for uses 1)–3) | Life-long + repayment |
| Item 4 | Item 2 combined with item 3(a) | Fixed-term + withdrawals |
Item 5 (repay first, pension from 60) is still printed, but it and the age-50 exception carry a note that they were “valid until 31 May 2014”, so the calculator leaves it out. The last amendment date shown on the article is 18 February 2025.
Five uses — item 3(a) 1)–5)
| Use | What the Decree says | Which method |
|---|---|---|
| 1) | Paying off the balance of a loan secured on the home | Both (a) and (b) |
| 2) | Returning a tenant’s deposit on the home | Both (a) and (b) |
| 3) | Paying off a loan when the owner or spouse is a small business owner closing the business | Both (a) and (b) |
| 4) | Levies for redevelopment, reconstruction, small-scale renewal or remodelling | (a) only — outside the 50% cap |
| 5) | Medical, education, home repair and other uses KHFC posts on its website | (a) only — inside the 50% cap |
So the 50% cap covers uses 1), 2), 3) and 5); only levies under 4) sit outside it, which on our reading lets you go up to 70% only when paying a redevelopment or remodelling levy. This matches KHFC’s explainer, which gives the withdrawal limit for the life-long mixed method as “50% of the loan limit” (see our home pension guide).
With a 300 million won loan limit — our examples
| Case (our example, limit 300 million won) | Result | Worth noting (ours) |
|---|---|---|
| Life-long + withdrawals: levy 50 million + loan repayment 150 million | Within | 200 million ≤ 210 million; the 50% cap of 150 million is full |
| Life-long + withdrawals: loan repayment 150 million + medical 10 million | Over | 160 million > 150 million under the 50% cap |
| Fixed-term + withdrawals: levy only, 200 million | Within | Levies sit outside the 50% cap; within 70% (210 million) |
| Life-long + repayment: loan repayment 270 million | Within | 90% is exactly 270 million won |
| Life-long + repayment: levy 10 million + loan repayment 100 million | Over | Item 3(b) covers uses 1)–3) only |
The loan limit itself is set by the committee’s guarantee standards under Act Article 9(4)2 and depends on age and home value, so you enter it here. KHFC’s explainer says larger withdrawals mean smaller monthly payments, but only a KHFC quote shows by how much.
First, can you join?
The age test (one spouse 55) and the 1.2 billion won published-price line are in our home pension eligibility checker. How this fits with the National Pension and other pensions is in three-tier pension.
Checklist
- ☐ Get your loan limit from KHFC first
- ☐ Uses 1)–3) and 5) together within 50%
- ☐ Redevelopment or remodelling levies up to 70%
- ☐ To clear an existing mortgage, look at the 90% repayment method
Questions that remain
Does a lump sum carry interest?
A home pension is a loan, so withdrawals join the loan balance. How costs and interest build up is in our home pension guide.
Is there a separate cap for medical bills?
The Decree leaves medical, education and repair uses to KHFC’s notice and only caps them, with uses 1)–3), at 50% in total. We did not read the detailed rules.
Can a fixed-term pension use the 90% method?
Item 3(b) is combined with item 1 (life-long); item 4 combines item 2 (fixed-term) only with item 3(a). So fixed-term plus 90% is not on the list, on our reading.
Sources
- Korean law database (law.go.kr) — KHFC Act Enforcement Decree Art. 3-2 — source (effective 1 October 2026, Decree No. 36729; checked 29 October 2026). Payment methods 1–5, the 70% and 50% caps and uses 1)–5) in item 3(a), the 90% cap in item 3(b), item 4, and the validity note on item 5 and the age-50 exception.
- Korean law database — KHFC Act Arts. 2(8-2), 9(4) — source (current text, effective 2 January 2026, Act No. 21065; checked 29 October 2026). Payment methods left to the Decree; the loan limit left to the committee’s guarantee standards (Art. 9(4)2).
- Not read. KHFC’s procedures and guarantee standards (loan limit tables), the list of item 5) uses posted by KHFC, how much monthly payments fall.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Korea Housing Finance Corporation — your loan limit and the monthly payment after withdrawals.
- Home pension guide — payment options and costs.
Written on 29 October 2026. The content is from the source; the glosses are ours.
