Lowering the Support Obligor Criteria to Annual Income of 100 Million KRW and Assets Below 900 Million KRW
Monthly Personal Savings of 100,000 or 150,000 KRW, 2 or 3 Years Option... City Provides Matching Support
[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government announced on the 22nd that it will recruit 7,000 new participants for the ‘Hope Double Youth Account’ from the 2nd to the 24th of next month.
The ‘Hope Double Youth Account’ is an asset-building support program where the city matches 100% of the participant’s monthly savings for the same period and returns double the amount at maturity. This year, the eligibility criteria regarding dependents such as parents and spouses have been significantly relaxed, greatly lowering the application threshold.
If working youth consistently save KRW 100,000 or 150,000 monthly for 2 or 3 years, Seoul will additionally deposit 100% of the participant’s savings using city budget and private funds. Participants can receive more than double the amount (including interest) at maturity. Youth wishing to join the ‘Hope Double Youth Account’ must visit their local community service center in person to submit the application form and required documents, but applications by mail or email are also accepted.
The ‘Hope Double Youth Account’ is based on the ‘Seoul Hope Plus Account,’ a support program for low-income households to accumulate lump sums, which Seoul first launched nationwide in 2009. Over the past seven years, Seoul has helped 18,100 people build assets through the ‘Hope Double Youth Account.’
Meanwhile, 300 new participants will be recruited for the ‘Kkumnarae Account,’ which supports asset building for low-income households raising children aged 14 or younger, during the same period as the Hope Double Youth Account.
The ‘Kkumnarae Account’ allows low-income families needing to save for their children’s education to save for 3 or 5 years, with the city supporting 50% to 100% of the savings, enabling participants to receive 1.5 to 2 times their own savings. It started in 2009 and targets households with children aged 14 or younger whose income is below 80% of the median income.
In particular, support for multi-child families has been strengthened, allowing participation for households with three or more children if their income is below 90% of the median income (KRW 4.6 million per month for a family of four). Final participant households for both the ‘Hope Double Youth Account’ and ‘Kkumnarae Account’ will be selected on October 14 after document screening, income and asset investigation, and credit checks following the application period. Selected households will sign agreements and begin their first savings in November.
Gu Jong-won, Director of Welfare Planning at Seoul City, said, “Due to the prolonged economic downturn caused by the spread of COVID-19, young people’s anxiety about the future has increased. Seoul has lowered the entry barriers for the ‘Hope Double Youth Account’ so that more young people can save diligently and plan for their future in housing, marriage, and entrepreneurship. Seoul will continue to provide support for a better daily life and future for young people.”
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