Table 2. Example of pension amount calculation (assuming housing price: KRW 300 million, loan maturity: 20 years, housing price change rate: 2%) (unit: KRW)

Mortgage subscriber age	30 years old
Initial housing price	300 million
Loan amount (LTV)	90 mil. (30%)	150 mil. (50%)	210 mil. (70%)
Loan maturity	20 years
Loan interest rate	4.0%
Monthly repayment (CPM)	545,382	908,970	1,272,559
Pension contribution (10% repayment)	54,538	90,897	127,256
Investment return	4.0%
Initial pension age	65 years old
Pension fund at age 65 from mortgage loan	36,411,928	60,686,547	84,961,166
Monthly pension amount (a)	196,876	328,127	459,377
Housing price change rate	2.0%
Housing price at age 65	603,773,899
Monthly housing pension amount (A)	1,540,920
Total pension amount (a+A)	1,737,796	1,869,047	2,000,297
Ratio to housing pension (a/A)	0.13	0.21	0.30

Note: 1) The monthly pension payment (a) from mortgage loan is calculated assuming that the pension will be paid for 24 years (288 months) by referring to the life expectancy of a 65-year-old female in the Korean Life Expectancy Table of 23.6 years.
2) Housing pension amount (A) was checked using the “Estimated Housing Pension Search” function on the Korea Housing Finance Corporation website.
LTV, loan to value; CPM, constant-payment mortgage.