South Korea launches second round of Youth Future Savings program

The second round of applications for the Youth Future Savings program begins on the 12th and runs through the 16th. This policy-driven financial product is designed for individuals aged 19 to 34, with extensions available for those who have completed military service.

Participants can deposit between 1,000 KRW and 500,000 KRW monthly for a three-year term. The government provides contributions of either 6% or 12% of the deposit amount, depending on the applicant's eligibility, alongside tax-exempt interest benefits. For those in the preferential category, depositing 500,000 KRW monthly could result in a total maturity amount of approximately 22.55 million KRW.

Eligibility requires a total annual salary of 75 million KRW or less (or annual sales of 300 million KRW or less for small business owners) and a household income at or below 200% of the median income. Applications can be submitted via 14 participating financial institutions, including KB Kookmin, Shinhan, Hana, and Woori Bank.

Existing holders of the Youth Leap Account may also apply to switch to the Youth Future Savings program. However, experts advise carefully comparing potential returns, as switching resets the three-year maturity period and may reduce the maximum monthly deposit limit from 700,000 KRW to 500,000 KRW.