South Korea to launch second recruitment for Youth Future Savings program

South Korea’s Financial Services Commission and the Korea Inclusive Finance Agency have announced the second recruitment period for the ‘Youth Future Savings’ program, running from October 7 to October 16. This policy initiative aims to support asset formation for young adults aged 19 to 34 by providing government contributions and tax-free interest on monthly savings of up to 500,000 won over three years.

A key feature of this second round is the opportunity for existing participants of the ‘Youth Leap Account’ to switch to the Youth Future Savings program if they missed the initial transition window. To qualify, applicants must meet specific income requirements, such as a total salary below 75 million won or annual sales below 300 million won for small business owners, while remaining within 200% of the median household income.

The government is also planning significant expansions for next year. Proposed changes include removing income restrictions entirely for the third recruitment round and increasing government matching rates. Specifically, the matching rate for the preferential type could rise from 12% to 15%, with a potential increase to 25% for employees of small and medium-sized enterprises (SMEs) located in regional areas. These enhanced benefits are expected to be applied retroactively to existing participants.