Over 2.3 Million Sign Up for Youth Future Savings with Up to 19% Returns

More than 2.3 million people have applied for the Youth Future Savings program, marking a successful launch. The surge in applications is attributed to the demand from young individuals seeking stable asset formation amid recent stock market volatility.

According to the Financial Services Commission and the Korea Inclusive Finance Agency, approximately 2,343,000 applications were received from June 22 to July 3.

Among the applicants, about 80,000 applied as small business owners. The highest proportion of applicants was among those aged 30 to 34, with 908,000 individuals, accounting for 38.8% of the total. Those aged 25 to 29 made up 36.5% with 856,000 applicants, while 24.7% were aged 19 to 24, totaling 579,000.

From today until July 24, a three-week eligibility review will take place, with results communicated individually to applicants on July 24. Those who pass the review can open accounts from July 27 to August 7, with monthly contributions ranging from 1,000 to 500,000 won.

The Youth Future Savings is a three-year, flexible savings product available to individuals aged 19 to 34. The government supports contributions with a 6% contribution for the standard type and 12% for the preferential type, along with exemptions from interest income tax. When factoring in the interest rate, government contributions, and tax benefits, the effective annual return is similar to a single-interest savings product yielding 13.2% to 14.4% for the standard type and 18.2% to 19.4% for the preferential type.

Switching from the Youth Leap Account to the Youth Future Savings is permitted during this initial enrollment period. In this case, the government contributions, tax exemptions, and preferential interest benefits for existing contributions will be maintained. Requirements for preferential interest, such as salary transfers, will also be recognized if already met or partially fulfilled.

Participants can also receive a boost to their credit score. After two years of participation and cumulative contributions exceeding 8 million won, they will receive a credit score increase of 5 to 10 points.

Additionally, starting in July, participation in the 'Financial Counseling for All Youth' program will provide an additional 0.2% preferential interest rate. Counseling must be completed by the end of the month three months prior to the savings maturity date, and participants can receive the preferential rate if they complete counseling within approximately two years and nine months after enrollment.