Reverse mortgages sharply up in past decade: data

SEOUL, Dec. 17 (Yonhap) -- The practice of so-called reverse mortgages in South Korea has increased sharply in the past decade as more homeowners, mostly elderly ones, are supporting themselves financially without their children's help after retirement, government data showed Sunday.

According to the data compiled by Statistics Korea, 10,309 people signed contracts with banks to borrow money by providing their homes as collateral last year.

The tally marks a sharp rise from 515 cases in 2007, when the scheme was first introduced. The plan allows elderly citizens to get money on a monthly basis, like a pension against the value of their homes.

Some 74 percent of reverse mortgage contracts were made in Seoul and adjacent areas, the data showed.

Also, the data showed that more parents are increasingly reluctant to leave their homes to their children, with the portion rising to 25.2 percent last year from 12.7 percent in 2008.

The portion of parents meeting living costs on their own also rose to 52.6 percent last year from 46.6 percent in 2008, the latest findings showed.

sam@yna.co.kr
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