2023-12-06 18:11:06
“Are only young people having a hard time in this country?” “Old and middle-aged people are a sin” “We too have a hard time raising children and supporting our parents” “The purpose of helping young people is good, but what are we middle-aged people?” “Are middle-aged people only paying taxes? Why are they always excluded from government policies?”
As the government continues to roll out policies that provide financial benefits only to young people, complaints are growing among the middle-aged. A representative example is the ‘Youth Leap Account’.
If you save 700,000 won per month for 5 years in the Youth Leap Account, you can save up to 50 million won in lump sum. Depending on the level of personal income and the amount paid, the government contribution is up to 24,000 won per month, and interest income is tax-free.
Those eligible to join are those aged 19 to 34 who meet the conditions of a total salary of 60 million won or less and a household income of 180% or less. If you have completed military service, up to 6 years of military service are excluded from age calculations. However, if financial income (sum of interest income and dividend income) exceeds 20 million won at least once in the three preceding years, subscription is restricted.
Starting this month, the Youth Leap Account has shortened the registration process for single-person households. Previously, an account might only be opened two weeks following the end of the application period, but from now on, an account can be opened three business days following the end of the application period. The application period for this month is 4 to 15 days.
The financial authorities and the Korea Inclusive Finance Agency also proposed a plan to allow a lump sum payment (up to 50 million won) of the maturity payment to the ‘Youth Housing Dream Subscription Account’ to help youth leap account subscribers purchase a house. We also decided to provide consulting services related to credit and asset management to help young people form good financial habits.
Among those who applied for the Youth Leap Account in October, 25,000 young people opened an account last month following receiving notice that they might sign up. Since last July, the cumulative number of subscribers has reached 478,000.
Some are pointing out that benefits are being given to the young without considering the middle-aged and elderly.
In online communities, it is easy to come across posts complaining regarding feelings of deprivation, such as “What are we doing as we age?” or “Aren’t there any financial benefits for the middle-aged?”
Mr. Lee, a middle-aged person, said, “The Youth Leap Account will actually open the way to evade the law by making donations by having parents make monthly payments.” He added, “It is the 4050 generation that bears the enormous tax burden, but I cannot understand why the benefits are concentrated only on the 2030 generation.” “I can’t do it,” he complained.
In response, the financial authorities explained that this policy was designed to keep in mind that as the asset gap between generations grows, it is difficult for young people to have opportunities to build assets.
An official from the financial authorities said, “There is an aspect that it has become relatively difficult for young people these days to form assets,” and “(middle-aged and elderly people) are supported with various products that provide opportunities for asset formation, such as personal comprehensive asset management accounts and retirement pensions.” said.
Meanwhile, regarding 2.868 million people signed up for the Youth Hope Savings Account, which was launched prior to the Youth Leap Account, with an interest rate of up to 10% per annum, which is more than eight times the government’s expected range at the time of launch. Additionally, the government introduced a rapid debt restructuring program centered around a reduction of up to 50% in financial interest. However, the word ‘investment loss’ included in the original announcement material spread into a controversy over the forgiveness of loan principal for young people who suffered losses from investing in virtual assets and stocks.
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