“Up to 8% a year”—this savings plan is back, and young people earning 75 million won or less are rushing to sign up

[Financial News] The Korea Post, under the Ministry of Science and ICT, is launching the second round of sales of the Post Office Youth Future Savings in response to strong demand among young people.
On the 6th, the Korea Post said it would accept applications for the second round of the Youth Future Savings from the 7th through the 16th. Eligible applicants are young people aged 19–34 who are wage earners with a total annual salary of 75 million won or less, or small business owners with annual sales of 300 million won or less. The comprehensive income limit is 63 million won.
Depending on annual income or sales and household median income, Youth Future Savings account holders can receive a government contribution equal to 6% or 12% of the amount they deposit. The product is a three-year, flexible-installment savings plan, with monthly deposits of up to 500,000 won. Interest earned at maturity is tax-exempt.
The base interest rate is 5.0% a year. Customers who open an account from Nov. 16 to 27 will receive an additional 1.0 percentage point. They can also qualify for preferential rates by meeting conditions such as an income-based bonus of 0.5 percentage points, completing financial counseling (0.2 points), being a first-time Post Office savings customer or having a record of salary transfers (0.5 points), using a debit card (0.4 points), and setting up automatic transfers (0.4 points). The preferential rates total up to 3.0 percentage points, bringing the maximum annual rate to 8.0%.
Applications will be staggered over the first two days according to the last digit of the applicant’s birth year. Those born in an odd-numbered year can apply on the 7th, and those born in an even-numbered year on the 8th. From the 12th through the 16th, applications will be accepted regardless of birth year.
Applications will be reviewed from the 19th through Nov. 13. Applicants who pass the review can open an account from Nov. 16 to 27.
Meanwhile, Youth Future Savings is a policy-backed financial product that combines government contributions with tax-exempt benefits to help young people build assets over the medium to long term. It is available through participating financial institutions as well as post offices, and the government contribution varies by income bracket.
[email protected] Kim Hee-seon Reporter