'Save 500,000 won a month for three years and get 22.55 million won, tax-free'—second-round applications for Youth Future Savings begin

[Financial News] Second-round applications for Youth Future Savings will be accepted for 10 days starting on the 7th. Applications can be submitted remotely through bank apps without providing documents.
The Financial Services Commission (FSC) and the Korea Inclusive Finance Agency announced on the 6th that they will accept second-round applications for Youth Future Savings from the 7th through the 16th, excluding Saturdays, Sundays and public holidays. Eligible applicants are young people aged 19 to 34 who were born between November 17, 1991, and November 27, 2007. Up to six years of military service will be excluded from the age calculation.
Applicants must also meet income and sales requirements. They must satisfy all conditions, including having annual gross pay of 75 million won or less, or comprehensive income of 63 million won or less, or being a small-business owner with annual sales of 300 million won or less, as well as having a household income at or below 200% of the median. The preferential type is available to employees of small and medium-sized enterprises who meet certain requirements, newly employed workers and small-business owners. They can receive a 12% matching contribution. Small-business owners must obtain a certificate confirming their small-business status in advance.
Youth Future Savings is a flexible-payment savings product with a three-year maturity. Subscribers can deposit up to 500,000 won per month at their discretion, while the government provides a contribution of either 6% or 12% depending on the amount deposited. Interest income tax is exempt, and when the interest rate, government contribution and tax exemption are all taken into account, the product offers benefits similar to those of a 'high-yield savings account.' Its effective returns are comparable to those of a simple-interest savings product offering up to 13.2%–14.4% for the standard type and 18.2%–19.4% for the preferential type.
The second-round recruitment also gives existing Youth Leap Account subscribers an opportunity to switch to Youth Future Savings. Those who wish to switch must apply during the second-round application period. If they pass the review, they can open a Youth Future Savings account and then apply for special early termination of their existing account.
On the 7th, young people whose birth years end in an odd number can apply, while those whose birth years end in an even number can apply on the 8th. From October 12 through 16, everyone can apply regardless of their year of birth. After applications are reviewed, results will be announced on November 12 and 13. Account opening and deposits will begin from November 16 through 27.
If the government's budget proposal is finalized through review by the National Assembly, changes such as expanded eligibility and higher contribution rates for the preferential type will be applied retroactively to existing subscribers. Existing preferential-type subscribers will receive the increased contribution, while subscribers who were previously ineligible for contributions will receive the standard-type contribution retroactively.
President Lee Jae Myung introduced Youth Future Savings on his social media account on the 4th, saying, "The government will lend its support to young people's futures." He emphasized, "Although requirements such as a household income at or below 200% of the median will apply through this second round of applications, eligibility is scheduled to be expanded to all young people starting next year," adding, "The government will support young people so they can steadily prepare for the future."
[email protected] Park Moon-soo Reporter