The Youth Savings Program, designed to support asset formation among young people, will accept applications from June 29 to July 3, regardless of birth year.
The Financial Services Commission and the Korea Inclusive Finance Agency announced on June 28 that applications for the Youth Savings Program will be accepted from June 29 to July 3. Applications can be submitted online through the apps of participating institutions, including companies, NongHyup, Shinhan, Woori, Hana, KB, iM, Busan, Gyeongnam, Gwangju, Jeonbuk, Suhyup, Kakao, and the Korea Post. The application hours are from 9 a.m. to 6:30 p.m.
The Youth Savings Program allows participants to contribute up to 500,000 won per month for a term of three years. Even if there are months without contributions, the account can remain active. The government will match contributions with a support rate of 6% for standard accounts and 12% for preferential accounts, and interest income will be tax-exempt.
As of 1 p.m. on June 26, the number of applicants exceeded 1 million, reaching 1,012,000.
The Financial Services Commission explained that considering the interest rates, government contributions, and tax benefits, the effective annual return for standard accounts is comparable to a simple savings account with a maximum interest rate of 13.2% to 14.4%, while preferential accounts can yield up to 18.2% to 19.4%.
Eligible applicants are young individuals aged 19 to 34 who meet income or revenue criteria. This application period is open to those born between January 1, 1991, and August 7, 2007. Individuals who have completed military service can exclude up to six years from their age calculation.
Notably, those who turn 35 between August 8 and December 31 of this year may face limited opportunities for future enrollment during the anticipated second application period in December. The Financial Services Commission advises potential applicants to take care not to miss this initial application window.
After applying, eligibility assessments will take place over three weeks from July 6 to July 24. Results will be communicated individually by the Korea Inclusive Finance Agency on July 24. Successful applicants can open accounts from July 27 to August 7 and can then make contributions freely.
* This article has been translated by AI.
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