'Yoon Seok-yeol's 100 Million Account' Materializes... Transition Team Announces "Youth Long-term Asset Account to Launch Next Year"

[Image source=Yonhap News]

[Asia Economy reporters Bu Aeri and Yoo Byungdon] The Presidential Transition Committee announced on the 2nd that it will newly launch the 'Youth Long-term Asset Account (tentative name)' next year to support asset formation among young people.

Kim Soyoung, a member of the Economic Subcommittee 1 of the Transition Committee, said at a press conference held in Tongui-dong, Jongno-gu, Seoul, in the afternoon, "We will actively review the direction of the 'Youth Leap Account' pledge, which was prepared to help young people accumulate a large sum of money over the long term."

First, the Transition Committee will newly launch the 'Youth Long-term Asset Account (tentative name),' a long-term (up to 10 years) asset formation support product that existing youth support products have not covered.

The Youth Long-term Asset Account will enhance fairness by differentiating based on income levels and other factors. Commissioner Kim explained, "We will promptly decide on the details and promote the launch within next year," adding, "The Youth Long-term Asset Account will determine the support targets and screening criteria at a reasonable level by balancing the support purposes and administrative costs for each product."

The Transition Committee plans to expand the practical asset formation support effect by strengthening the linkage between various products centered on the Youth Long-term Asset Account.

The core framework envisioned by the Transition Committee is the 'Youth Tomorrow Savings Account + Youth Long-term Asset Account.' The Youth Tomorrow Savings Account is a system where young people from households with an annual income of 6 million to 24 million KRW and household income below 100% of the median can receive a government contribution of 100,000 KRW when they deposit 100,000 KRW monthly (with a maturity of 3 years).

Commissioner Kim said, "Applications for the Youth Tomorrow Savings Account will be accepted nationwide through local governments starting in the second half of this year," and added, "We will continuously review necessary institutional improvements."

He further stated, "The Korea Inclusive Finance Agency will be responsible for operations such as system construction and budget execution in cooperation with the financial sector," and "We are also considering establishing a separate fund if necessary."

Previously, President-elect Yoon pledged the Youth Leap Account during the presidential election campaign. The Youth Leap Account is an account for working young people aged 19 to 34, where if they save a certain amount up to a monthly limit of 700,000 KRW, the government supports up to 400,000 KRW per month, enabling them to accumulate 100 million KRW over 10 years. However, government benefits vary depending on income.

Regarding this, Commissioner Kim said in a briefing with reporters, "Since the original pledge was to 'make 100 million KRW,' we are proceeding in a way that allows making 100 million KRW within 10 years if possible," and explained, "If you deposit 700,000 KRW monthly with an interest rate of 3.6%, it becomes 100 million KRW, but since the interest rate is uncertain, we are considering increasing it to 750,000 KRW and other options."

This content was produced with the assistance of AI translation services.