Project Budget Reduced from 448.7 Billion KRW to 347 Billion KRW
Monthly Contribution Up to 33,000 KRW... Maturity Payout Increased to 600,000 KRW
Although the budget for the 'Youth Leap Account' was cut in the National Assembly, the government is continuing its policy to expand contributions, resulting in subscribers receiving up to 600,000 KRW more at maturity starting next year. On the 26th, the Financial Services Commission announced that from January next year, the contribution support level for the Youth Leap Account will be increased to about 33,000 KRW per month.
Previously, the Financial Services Commission had set the budget for the Youth Leap Account at approximately 448.7 billion KRW for next year, but due to demands from the Ministry of Economy and Finance, the related budget was reduced to 375 billion KRW. The National Assembly further cut about 28 billion KRW considering poor actual execution over the past two years and overestimated budget performance. As a result, the 2025 budget for the Youth Leap Account project was set at 347 billion KRW; however, the Financial Services Commission stated that it plans to continue accepting subscriptions and providing contributions monthly without disruption as before.
The Youth Leap Account had been supporting contributions ranging from 21,000 to 24,000 KRW per month depending on the subscriber's personal income level. Subscribers with lower personal income levels received higher contributions, which were determined based on matching rates, matching limits, and payment amounts according to income levels. However, starting January next year, all subscribers will receive contributions equivalent to the actual amount they pay. For example, for those with an annual income of 24 million KRW or less, if they pay 700,000 KRW monthly, previously contributions were paid only up to the matching limit of 400,000 KRW at a 6.0% rate, resulting in 24,000 KRW per month. From next year, an additional 3.0% contribution will be paid on the expanded matching limit range (400,000 to 700,000 KRW), increasing the monthly contribution to 33,000 KRW.
Due to these changes, the amount received at maturity will increase by up to 600,000 KRW, and when converted to a typical savings product, the annual return effect rises from a maximum of 8.87% to 9.54%. Especially with the revision of the Restriction of Special Taxation Act, maintaining the subscription for more than three years allows subscribers to receive tax-exempt benefits and 60% of the contributions even in cases of unavoidable early withdrawal, enabling an expected annual return effect of up to 7.64%.
Credit evaluation benefits will also be newly introduced. Starting January next year, if a subscriber maintains the account for more than two years and pays over 8 million KRW, 5 to 10 points will be automatically added to their personal credit evaluation scores based on NICE and KCB standards.
Additionally, from the second half of 2025, subscribers who maintain their account for more than two years will be able to use a partial withdrawal service within 40% of the principal paid. This measure supports young people in maintaining their accounts without cancellation even when they need emergency funds.
Youth wishing to subscribe can apply via mobile apps of 11 handling banks including NongHyup, Shinhan, Woori, Hana, Industrial Bank of Korea, Kookmin, IM, Busan, Gwangju, Jeonbuk, and Gyeongnam from January 2 to 10, 2025. After going through the subscription eligibility verification process, account opening will be possible. Single-person households can open accounts from January 16 to February 7, and households with two or more people can open accounts from January 27 to February 7.
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