KB Asset Management Launches Four 'Youth Income Deduction Long-Term Funds'

On the 20th, KB Asset Management launched four types of Youth Income Deduction Long-term Funds (hereinafter referred to as Youth Funds).

The funds launched as Youth Funds are a total of four types: 'KB Sustainable Dividend Youth Income Deduction Fund,' 'KB Sustainable Dividend 50 Youth Income Deduction Fund,' 'KB Hanmi Representative Growth Youth Income Deduction Fund,' and 'KB Korea Index 50 Youth Income Deduction Fund.'

Youth Funds are funds launched to help young people build assets in accordance with Article 91-20 of the Restriction of Special Taxation Act, and subscriptions are available until December 31, 2023.

The eligible subscribers are young people aged 19 to 34 with an annual salary of 50 million KRW or less or a comprehensive income amount of 38 million KRW or less.

Subscribers can pay up to 6 million KRW annually for a minimum of 3 years and a maximum of 5 years, and can receive an income deduction of 40% of the payment amount (up to 2.4 million KRW annually).

If a subscriber pays 6 million KRW annually into the Youth Fund for 5 years, they can receive an income deduction on 12 million KRW, which is 40% of the total payment amount. Applying a tax rate of 16.5% (for taxable income between 14 million and 50 million KRW), they can get a tax refund of up to 1.98 million KRW over 5 years.

Lee Seok-hee, Executive Director of the Pension WM Division at KB Asset Management, explained, "Youth Funds are funds that offer lower fees compared to funds with the same strategy while providing income deduction benefits. We hope that through Youth Funds, young people can enjoy tax benefits and also be helped in asset formation."

KB Asset Management's Youth Income Deduction Long-term Funds can be subscribed to at KB Kookmin Bank, KB Securities, Shinhan Bank, Woori Bank, Mirae Asset Securities, NH Investment & Securities, Kyobo Securities, Kiwoom Securities, Daishin Securities, Gyeongnam Bank, Busan Bank, Jeju Bank, and others.