SOUTH KOREA TO SEE FIRST MORTGAGE INSURANCE SCHEMES

Samsung Fire and Marine Insurance, the largest non-life insurer in South Korea is to launch the country’s first mortgage insurance programme. The policy will guarantee repayment of a mortgage loan in the event of a borrower’s default. Under the current regime, South Korean homeowners are unable to get mortgage loans exceeding 60% of the value of a property and it is anticipated that this will now increase to 80% with the introduction of mortgage insurance. According to the Korea Insurance Development Institute, the mortgage insurance market will be worth 16.5trn won in 2007 and 18trn won by 2008.