Support for Low-Income Workers at a Fixed Percentage of Their Own Savings Amount
[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Jae-ho] Daegu City announced on the 29th that it will recruit an additional 1,035 participants for the asset-building support project to help low-income families accumulate a lump sum from May 3 to 20.
The asset-building support project is designed to help recipients of the National Basic Livelihood Security and the near-poverty class save a lump sum necessary for self-reliance by providing government subsidies at a certain rate on their own savings, allowing them to accumulate a lump sum after a 3-year maturity period.
Currently, 2,989 people are enrolled and receiving support through five types of savings accounts: Hope Savings Account I & II, Tomorrow Savings Account, Youth Hope Savings Account, and Youth Savings Account.
The Hope Savings Account I, targeted at households receiving livelihood and medical benefits, provides a work income incentive (up to KRW 663,000 per month) proportional to household income when saving KRW 50,000 or 100,000 monthly, allowing recipients to receive up to approximately KRW 28.18 million at maturity.
The Hope Savings Account II, aimed at households receiving housing and education benefits or the near-poverty class, prioritizes enrollment for single-parent families or households supporting children and youth under 18 years old. By saving KRW 100,000 monthly, participants receive a work income incentive of KRW 100,000, enabling them to accumulate KRW 7.2 million after 3 years.
The Tomorrow Savings Account, for self-support workers participating in self-support projects, matches the participant’s savings (choice of KRW 50,000, 100,000, or 200,000) on a 1:1 basis. Supported by the Tomorrow Work Incentive, sales reserves, and profits from the self-support project, participants can save up to KRW 23.4 million over 3 years.
The Youth Hope Savings Account, for working youth aged 15 to 39 in households receiving livelihood benefits, accumulates a monthly work income deduction of KRW 100,000 without requiring personal savings if work or business income is maintained for 3 years. Additionally, 45% of the youth’s total income is added as a work income incentive (up to KRW 538,000 per month), allowing them to receive up to approximately KRW 23.68 million at maturity.
The Youth Savings Account, for working youth aged 15 to 39 in households receiving housing and education benefits or the near-poverty class, provides a work income incentive of KRW 300,000 on top of a personal monthly saving of KRW 100,000, enabling accumulation of KRW 14.4 million after 3 years.
Park Jae-hong, Director of the Welfare Bureau of Daegu City, stated, "During these difficult times of COVID-19 and economic downturn, the asset-building project will be a great opportunity for accumulating a lump sum and achieving self-reliance," and added, "We hope for active participation from working low-income households and youth."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
