The second round of applications for the Youth Future Savings program will begin on October 7. Existing Youth Transition Account holders will have the opportunity to switch to the Youth Future Savings program.
The Financial Services Commission and the Korea Inclusive Finance Agency announced on September 16 that the application period for the second round of the Youth Future Savings program will run from October 7 to 16, aimed at expanding asset formation opportunities for young people.
On October 7, young people born in odd-numbered years can apply, while those born in even-numbered years can apply on October 8. From October 12 to 16, applications will be accepted regardless of birth year. The application review will take place from October 19 to November 13, and successful applicants can open accounts from November 16 to 27.
The Youth Future Savings program allows individuals aged 19 to 34 to contribute between 1,000 won and 500,000 won monthly for three years, with the government matching a certain percentage of contributions and providing tax benefits on interest income. Eligible participants are those born between November 17, 1991, and November 27, 2007. The duration of military service can be excluded from the age calculation for up to six years.
The income requirements remain the same as in the first round. Young people with a total salary of 75 million won or less, or small business owners with annual sales of 300 million won or less, and whose household income is at or below 200% of the median income are eligible. Among them, general income earners with a total salary of 60 million won or less can receive a government contribution of 6% of their contributions.
Employees of small and medium-sized enterprises who meet certain criteria, as well as new hires, can apply under a preferential category. This category requires a total salary of 36 million won or less or annual sales of 100 million won or less, with a government contribution matching rate of 12%.
Additionally, existing Youth Transition Account holders will have the opportunity to switch to the Youth Future Savings program. While dual enrollment in the Youth Transition Account and the Youth Future Savings program is not allowed, this second round of applications permits special early termination of the Youth Transition Account to enroll in the Youth Future Savings program.
Meanwhile, the Financial Services Commission has submitted a 2027 government budget proposal to the National Assembly that includes expanding the eligibility for the Youth Future Savings program to all young people and increasing the preferential government contribution matching rate from 12% to 15%. For employees of local small businesses, the preferential matching rate could be raised to 25%.
If the budget proposal is approved by the National Assembly, existing Youth Future Savings participants will also receive the increased preferential contributions retroactively. The expansion of eligibility will take effect starting with the 2027 recruitment after system adjustments.
* This article has been translated by AI.
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