[Digital Today reporter Ji-young Lee (이지영)] KakaoBank will move to ease financial burdens for people buying homes by supporting interest on Bogeumjari loans.

KakaoBank said on March 16 it will support up to 200,000 won in interest for customers who take out an 'Akkim-e Bogeumjari loan' through KakaoBank over two months in April and May.

The Akkim-e Bogeumjari loan is a policy finance product for homebuyers handled by the Korea Housing Finance Corporation. It is available for households with combined annual income of 70 million won or less, using apartments, multi-family row houses and multi-family homes priced at 600 million won or less as collateral. Income requirements are eased for newlywed couples, households with multiple children and victims of jeonse fraud. The loan-to-value ratio is recognised up to 70 percent for apartments and the debt-to-income ratio up to 60 percent.

The interest support applies to customers who choose or switch the Akkim-e Bogeumjari loan executing institution to KakaoBank through the Korea Housing Finance Corporation and take out the loan through KakaoBank in April or May. KakaoBank will pay up to 200,000 won, equivalent to one month of interest on the Akkim-e Bogeumjari loan taken out by the customer.

The Akkim-e Bogeumjari loan carries an annual rate of 4.05 percent for a 10-year maturity as of March 2026. Preferential rates apply depending on eligibility, including for low-income youth, newlywed households and socially vulnerable groups such as people with disabilities and single-parent households.

KakaoBank said, "We prepared the event to improve convenience for Bogeumjari loan customers and help reduce their interest burden," adding, "We will continue to work for housing stability for homebuyers and support housing finance, and strive to enhance convenience for financial consumers."