Subscribers holding older subscription accounts such as housing subscription deposits, installment savings, and subscription savings will be given one more year to switch to the Housing Subscription Comprehensive Savings. In addition, the system has been improved so that the subscription period of the existing account is reflected in interest rate calculation during the conversion process, which is expected to increase interest benefits for long-term subscribers.

The Ministry of Land, Infrastructure and Transport announced that the period during which subscribers of the former occupant savings can convert to the Housing Subscription Comprehensive Savings will be extended from the originally planned September 30, 2026 to September 30, 2027.

[Why Was the Conversion System Introduced?]

The conversion system was introduced in October 2024 to broaden the range of homes available for subscription, which had previously differed depending on the type of subscription account. Previously, subscribers of housing subscription deposits and installment savings could mainly apply for private housing, while subscription savings subscribers applied for public housing. Housing subscription installment savings were limited to private housing with an exclusive area of 85 square meters or less.

If these accounts are converted to the Housing Subscription Comprehensive Savings, both public and private housing can become subscription targets. In effect, subscription options that had been tied to specific housing types are broadened.

However, converting the account does not mean that all past subscription records are retroactively applied to the newly added housing types. For housing types that could be applied for with the existing account, the previous subscription period and payment records are recognized as they are. Conversely, for housing types that become newly eligible after switching to the comprehensive savings, the subscription period and payment records accumulated after the conversion are used as the standard.

[Subscription Period Recognized... Annual 3.1% Interest Rate Applied Immediately After Conversion]

The interest rate application method will also change. The interest rate for the Housing Subscription Comprehensive Savings ranges from 2.3% to 3.1% annually depending on the subscription period, with 3.1% per annum applied for subscription periods of two years or longer.

Until now, for subscribers who converted their existing subscription accounts to the comprehensive savings, the subscription period before conversion was not included in the interest rate calculation. As a result, they had to wait another two years after switching to the comprehensive savings to receive the highest interest rate.

Going forward, the period during which the previous account was maintained will be reflected in the interest rate calculation. Accordingly, subscribers who meet the requirements for the highest interest rate will be able to receive an annual 3.1% interest rate immediately after conversion.

[How to Apply for Conversion]

Conversion applications can be made through branches or mobile apps of the bank where the existing occupant savings were opened. Subscribers of housing subscription deposits and installment savings are not limited to their existing banks and can choose any of the nine banks entrusted with the Housing and Urban Fund to convert.

[The subscription system and applicable interest rates may change depending on policy changes by relevant authorities. Before actually converting or applying for subscriptions, it is necessary to check the latest guidance from the Ministry of Land, Infrastructure and Transport and the relevant financial institutions. This article was written based on publicly available government materials, with AI used to refine some sentences.]