"Youth Want Asset-Building and Loan Interest Support"

Survey of Youth Leap Account Subscribers Conducted by Korea Inclusive Finance Agency

It has been found that the financial policies most needed by young people are those related to asset-building support and interest subsidies on loans.

On July 10, the Korea Inclusive Finance Agency conducted a survey of 1,161 subscribers to mark the second anniversary of the launch of the Youth Leap Account. According to the results, young people responded in this way. More than 9 out of 10 respondents (91.6%) said that "financial support policies for the youth are necessary." When asked which policy areas they considered most important (multiple responses allowed), asset-building support ranked highest at 44%, followed by interest subsidies on loans at 19.1%. Investment support (12.4%), financial education (11.3%), financial counseling (8.1%), and insurance support (5%) followed in that order. The Korea Inclusive Finance Agency explained, "There is high demand for policies that support asset-building and alleviate financial burdens."

Regarding the reason for subscribing to the Youth Leap Account, half of the respondents (50%) cited "asset-building through savings and investment," followed by preparing funds for housing (21%) and marriage (13%).

Since its launch, the Youth Leap Account has attracted 2,142,000 subscribers as of last month. As of May, the cumulative amount deposited reached 12.6145 trillion won (2,021,000 people), and the number of subscribers maintaining their accounts was 1,703,000, resulting in a retention rate of 84.2%. Over the past two years, 175,000 young people have maintained their subscriptions, and among them, 123,000 (70%) made regular monthly deposits without missing a payment.

Meanwhile, to mark the second anniversary of the Youth Leap Account, the Korea Inclusive Finance Agency announced that subscribers who have maintained their accounts for two years or more can now benefit from a partial withdrawal service and receive additional personal credit score points if they have made diligent payments. The partial withdrawal service can be used once during the subscription period by those who have maintained their account for at least two years. It is available for up to 40% of the total amount deposited. However, interest, interest income tax, and government contribution rules for the withdrawn amount will be applied in the same way as for early termination.

Subscribers who have maintained their accounts for two years or more and deposited at least 8 million won will automatically receive an additional 5 to 10 credit score points according to the detailed standards of credit rating agencies (NICE, KCB).

Lee Jaeyeon, president of the Korea Inclusive Finance Agency, stated, "We hope that the new services introduced for the second anniversary of the Youth Leap Account will help young people maintain financial stability by responding to sudden funding needs." He added, "We will continue to develop products and consulting and educational content that meet the needs and expectations of young people, so that we can play a practical role in improving their financial lives."