Financial Services Commission Announces Expansion Plan for Youth Leap Account Contributions
Up to 24,000 KRW per Month and 1.44 Million KRW over 5 Years →
Expanded to Up to 33,000 KRW per Month and 1.98 Million KRW over 5 Years
Detailed Implementation Plan to Be Prepared Within the Year After Consultation with Relevant Ministries
The government will increase the contribution to the Youth Leap Account from the current maximum of 24,000 KRW per month to 33,000 KRW, with a total maximum of 1.98 million KRW over five years. Accordingly, subscribers are expected to receive up to 600,000 KRW more at maturity.
On the 29th, Kim So-young, Vice Chairman of the Financial Services Commission, held the "Youth Leap Account 2024 Second Half Operation Review Meeting" at the Korea Federation of Banks in Jung-gu, Seoul, and announced the plan to expand the contribution support for the Youth Leap Account. Vice Chairman Kim stated, "Given the recent challenging financial conditions due to economic and demographic changes, it is necessary to provide stronger savings incentives and motivation for young people to build their own assets," adding, "In response to this need, we have prepared a plan to expand the Youth Leap Account contribution support through recent consultations with related ministries."
Currently, the Youth Leap Account provides monthly contributions ranging from 21,000 to 24,000 KRW depending on the subscriber's personal income level. Subscribers with lower personal income levels receive higher contributions, which are determined by the matching rate, matching limit, and payment amount according to income level.
For income brackets where the matching limit (monthly 400,000, 500,000, or 600,000 KRW) applies, subscribers can receive the maximum contribution even if they do not pay up to the payment limit (monthly 700,000 KRW). However, contributions are not paid on amounts exceeding the matching limit, which has raised ongoing concerns about the need for measures to prevent reduced savings incentives.
Therefore, the Financial Services Commission plans to strengthen support for saving youth by expanding the matching limit to the payment limit across all income brackets (from monthly 400,000, 500, 600,000 KRW to 700,000 KRW) and applying a 3.0% matching rate to the expanded range (monthly 400,000?700,000 KRW, 500,000?700,000 KRW, 600,000?700,000 KRW) to provide contributions.
For subscribers with a personal income of 24 million KRW or less, currently, paying 700,000 KRW per month results in contributions only up to the matching limit of 400,000 KRW (matching rate 6.0%), receiving 24,000 KRW monthly. Going forward, paying 700,000 KRW per month will also receive contributions in the expanded matching limit range (400,000?700,000 KRW) at a 3.0% matching rate, increasing the monthly contribution by 9,000 KRW (300,000 KRW × 3.0%) to 33,000 KRW. The amount received at maturity can increase up to 600,000 KRW, providing a yield effect equivalent to subscribing to a general savings product with an annual interest rate of 9.54%.
Subscribers with a personal income between 24 million KRW and 36 million KRW will receive an increased monthly contribution of 29,000 KRW, up by 6,000 KRW (200,000 KRW × 3.0%), and those with income between 36 million KRW and 48 million KRW will receive 25,000 KRW monthly, up by 3,000 KRW (100,000 KRW × 3.0%).
Vice Chairman Kim said, "This support plan will especially provide stronger assistance to young people who diligently save despite limited income," adding, "Even young people who have relatively little interest in saving will be able to experience saving through subscribing to the Youth Leap Account, providing more young people with opportunities to build assets."
At the review meeting, Park Joon-tae, a research fellow at the Korea Institute of Finance, said that since the Youth Leap Account is a financial product encouraging voluntary asset accumulation by young people rather than a typical welfare product, expanding contribution support will be effective in achieving policy goals. He also suggested considering additional support by providing extra contributions if subscriptions are maintained for a certain period.
Professor Han Chang-geun of Sungkyunkwan University noted that 1.4 million young people have subscribed to the Youth Leap Account, maintaining a high retention rate of over 90% during its first year, establishing it as a foundational product in the asset portfolio of the youth. He advised that support measures linked with asset management consulting and financial education should continue to be explored.
Youth participants said that the issues raised through youth opinion gathering have been steadily realized and proposed considering ways to provide opportunities for participation in the Youth Leap Account through private sector donations to help reduce asset gaps and promote coexistence and integration across generations and classes.
The Financial Services Commission plans to promptly coordinate detailed implementation plans with related ministries and agencies to ensure the smooth execution of the contribution support enhancement. Additionally, as government-level discussions on activating donations for proactive coexistence are underway, the commission will actively review and promote linking donations with the Youth Leap Account using financial instruments such as trusts in cooperation with related organizations.
Meanwhile, the Youth Leap Account accepts subscription applications monthly, and applications can be easily made through the mobile apps of participating banks. The subscription period for September will run from September 2 to 13, and youths who previously applied but did not open an account can reapply during the same period. After verifying eligibility, eligible youths can open accounts: single-person households can open accounts from September 24 to October 18, and households with two or more persons can open accounts from October 4 to October 18.
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