Decreased maturity from ‘10 years, 100 million won’ pledge
The financial institution will announce the fixed interest rate at a later date
Differential support amount by income level
Duplicate subscription to Youth Desire Installment Savings is not allowed
The release date of the Youth Leap Account, which can raise a lump sum of up to 50 million won with government support by paying 700,000 won (42 million won) per month for 5 years, has been confirmed in June.
On the 8th, the Financial Services Commission announced the direction of the youth leap account operation including these contents. The Youth Leap Account has been promoted as a presidential election pledge by President Yoon Seok-yeol and a national task to support the formation of assets for young people. Initially, President Yoon said in his presidential election pledge that he would be able to make 100 million won with a maturity of 10 years, but the maturity was shortened to 5 years due to problems such as budget.
The target audience for the Youth Leap Account is between the ages of 19 and 34. Must be 180% or less of the median household income with a gross wage of less than 75 million won. Subscribers can receive government contributions of 21,000 to 24,000 won per month depending on their income and payment amount if they freely pay up to 700,000 won per month for 5 years. Interest income is also tax-free. The lower your personal income, the more support you receive.
For example, if your personal income is less than 24 million won per year, if you pay 700,000 won per month, you can receive 24,000 won per month as a government contribution by matching 6.0%. If your income is less than 48 million won, even if you do not meet the monthly payment limit of 700,000 won, you can receive all of the contributions if you pay at least 400,000 to 600,000 won for each income. If your income is more than 60 million won and less than 75 million won, you can receive only tax-free benefits without government contributions.
The interest rate structure is a fixed rate for the first three years and a floating rate for the next two years. The interest rate level is yet to be decided, but following the handling institution is confirmed, the relevant financial company will disclose it on the website of the Financial Association. Kim So-young, vice chairman of the Financial Services Commission, said in a briefing that day, “There is room for change depending on the level of interest rates in the future, but basically, you can think of finding around 50 million won at maturity.”
The Financial Services Commission plans to accept non-face-to-face subscription applications through mobile applications of financial companies from June. The Youth Hope Savings Savings, which was launched during the Moon Jae-in administration, cannot be duplicated, so you can subscribe following expiration or early termination.
Earlier, the government secured 367.8 billion won for six months as this year’s budget to be used for government contributions. Financial authorities predict that regarding 3 million people will join.
Reporter Song Soo-yeon
