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영어

With the launch of the new administration, a comprehensive review is needed for the multi-leveled Old-age income security system that includes both public and private pension plans. This overall examination of the system requires reconsideration of the current reverse mortgage system as an Old-age income security system for the elderly. Reverse mortgage system provides life-long pension and housing to its beneficiary by putting down the beneficiary’s house as a collateral. The Korea Housing Finance Corporation guarantees the payment pension plans for the reverse mortgage system and limits the liability up to the value of the housing. The reverse mortgage system offers various way to pay the pension, nonetheless, the payment must be made periodically during life, and the right of payment cannot be transferred, seized, or provided to someone else as collateral. This reverse mortgage system receives positive evaluation for a successful Old-age income security since its first implementation in 2007, yet it still needs to be continuously improved to become a more stable and effective scheme. As such, this report analyzes current law on the reverse mortgage system while focusing on its Old-age income security part, points out its present drawbacks of the system, and then proposes tasks for further improvements.