Housing Subscription Comprehensive Savings Account Conversion Extended by One Year; Previous Holding Periods Also Count Toward Interest Rates

[Financial News] The deadline for converting housing subscription deposit accounts, installment savings accounts and savings accounts into Housing Subscription Comprehensive Savings Accounts will be extended by one year through the end of September next year. The system will also be improved so that the holding period of the previous account is counted when calculating interest rates, allowing eligible account holders to receive an annual rate of up to 3.1% immediately after conversion.
According to the Ministry of Land, Infrastructure and Transport (MOLIT) on the 23rd, the account conversion system allows existing accounts, which could be used to apply for only certain housing types, to be converted into Housing Subscription Comprehensive Savings Accounts that can be used to apply for both national and private housing. The system was introduced in October 2024, and the conversion deadline, originally set for the end of this month, has been extended by one year to September 30, 2027.
Housing subscription deposit accounts can be used to apply for private housing, installment savings accounts for private housing with an exclusive area of 85 square meters or less, and housing subscription savings accounts for national housing. After conversion to a comprehensive savings account, holders can choose to apply for both national and private housing without these distinctions.
The criteria for recognizing housing application records vary by housing type. For housing types for which applications were possible with the previous account, the existing holding period and payment record will be fully recognized. For housing types for which eligibility is newly acquired through conversion, only the holding period and payment record after conversion will be counted.
Interest-rate benefits will also be expanded. Housing Subscription Comprehensive Savings Accounts carry annual interest rates ranging from 2.3% to 3.1%, with account holders of at least two years receiving the maximum annual rate of 3.1%. Until now, account holders had to wait two years after conversion to qualify for the highest rate because only the period after joining the comprehensive savings account was counted. Going forward, the holding period of the previous account will also be added.
MOLIT plans to revise the Public Notice on Interest Rates and the Operation of the Housing Subscription Comprehensive Savings Account in October. After the system is improved, account holders who maintained their previous accounts for at least two years will be eligible for the maximum interest rate immediately upon conversion.
Applications for conversion can be submitted at a branch or through the mobile app of the bank where the existing account was held. Holders of housing subscription deposit and installment savings accounts may also choose a bank other than their current one from among the nine banks entrusted with the Housing and Urban Fund: Kyongnam Bank, KB Kookmin Bank, Industrial Bank of Korea (IBK), Nonghyup Bank, Busan Bank, Shinhan Bank, Woori Bank, Hana Bank and iM Bank.
Jang Woo-cheol, Director General for Housing Policy at MOLIT, said, "We will actively provide guidance so that account holders can fully understand the expanded housing application opportunities and interest-rate benefits and make use of them in line with their future housing plans."
[email protected] Choi Ga-young Reporter