Why Are There Mortgage-Type and Trust-Type Housing Pensions?

The housing pension is a program for "older people who have a home but no cash".
When the housing pension was first launched in 2007, only the mortgage type existed.
What is the mortgage type?
① A method similar to a conventional secured loan
② Ownership remains with the subscriber, and only a security interest is created
So it was a structure that was easy for the public to understand
But a problem arose: the nightmare of spousal succession
When a husband receiving a housing pension died, the wife needed her children's consent to keep receiving the pension
But
Children: "Let's sell the house and split the cash"
Wife: "But I want to keep living here..." 😢
For the wife to keep living there, the procedure was complicated
① She had to apply to assume the debt within 6 months, and
② Consent forms from all heirs (the children) were required
If that failed, the pension was stopped
So in 2016, the trust type was introduced.
The reason for its introduction was to protect spouses.
With an automatic succession system upon the subscriber's death, the spouse can safely receive the pension even without the children's consent, which also prevents family conflicts.
For both types, actual residence is mandatory. However, there is a big difference.
< Whether renting out is allowed >
Mortgage type: only monthly rent without a deposit is allowed for part of the space
Trust type: both jeonse and monthly rent are allowed for part of the space

The government is effectively encouraging a switch to the trust type.
The trust type is expected to become mainstream in the future.