[횡설수설/홍수용]Youth Hope Savings Savings Application Explosion

“I can’t even save money because I don’t have any income”, “It is not fair that a gold spoon with a low salary becomes a member, and a dirt spoon with a high salary cannot join”… . Although the number of applications for subscription to the Youth Hope Savings Savings Savings Program, launched on the 21st, is increasing, the number of cases rejected is increasing, and voices of dissatisfaction are accumulating online. This savings account is a policy support product with high interest rates, tax-free and incentive benefits. If you put 500,000 won per month for two years, you can earn about 980,000 won in interest. It is a structure that earns about 770,000 won more than the 2% annual interest savings of commercial banks.

▷The reason why young people are flirting with 770,000 won is because the stock price plunged at the beginning of the year, and expectations for the Youth Hope Savings Savings Savings Savings Program, which provides an annual interest rate of 10% without the risk of principal loss, have suddenly risen. In the preliminary inquiry before the release of this savings account, there were signs of a runaway as the number of potential subscribers reached 2 million. As soon as the actual first-come-first-served subscription application started, the online application (app) became stuck. Reverse discrimination is also rising as some foreigners are also accepted, but Koreans who have worked last year and cannot verify income information are rejected as members.

▷ The fact that young people are flocking to savings savings accounts and strictly scrutinize the conditions for membership means that they are so desperate. The struggle to somehow get out of the dark tunnel, where it is difficult to find the job you want and where house prices have skyrocketed, is melted in the rush of applications. The current 2030 generations live in an unequal society where the wealth gap between the bottom 20% and the top 20% has increased from 33 times in 2019 to 35 times in 2020. 770,000 won may be a small amount of money for the older generation, but for the ‘dirty spoon’, it is a valuable investment technique that cannot be given up.

▷ It is rare for the current generation to not remember ‘reform savings’. The restructuring savings account for the 20% annual interest rate plus tax-free benefits almost doubled the principal even after 3 years. Using this as seed money, office workers were able to climb the hierarchy by changing from monthly rent to jeonse and from jeonse to their own house. Compared to this, the Youth Hope Savings Fund is insufficient to serve as a starting point for wealth formation. Even if it is difficult to pay interest as it was in the high interest rate era 30 years ago, it can become another class ladder if it is supplemented by increasing the amount of incentives.

▷ Savings money, which incentivizes those who save hard, is different from cash distribution. It has the effect of reducing the poor by encouraging subscribers to continue working in the workplace. Even so, it is difficult to increase income by this alone. Although bankbooks supporting youth have been pouring in since 2015, there has been no noticeable improvement in income. Also, the basis of asset formation is jobs. It is more important to teach young people how to fish than to give them fish directly, and to improve employment conditions so that there are more fish.

Editorial member Hong Soo-yong [e-mail]

#Youth Hope Savings Savings Application Explosion#gold spoon

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