'Cheongnyeon Doyak Account' Expected to Launch in June Next Year

[Asia Economy Reporter Eunju Lee] The Youth Leap Account will be launched in June next year.

The Financial Services Commission announced on the 24th that the 2023 expenditure budget (3.8 trillion KRW) and the relevant fund expenditure plan (34 trillion KRW), including the operating budget for the Youth Leap Account, a key youth pledge of the Yoon Seok-yeol administration, have been finalized.

The Youth Leap Account is a policy-type financial product that supports youth asset formation. The Financial Services Commission plans to allow youths aged 19 to 34 who meet the criteria of individual income (under 60 million KRW) and household income (below 180% of the median income) to subscribe to the account.

The payment limit is 8.4 million KRW per year (up to 700,000 KRW per month). A mandatory subscription period of five years is required to receive government matching support. If the account is terminated early before completing the five-year mandatory subscription period, the tax reduction amount will be reclaimed, reducing the benefits. Subscriptions for the Youth Leap Account will be accepted from June next year until December 31, 2025. However, specific details will be decided later.

Additionally, the Financial Services Commission plans to conclude the Youth Hope Savings, launched in February this year, by paying incentives between February and April 2024 when the two-year maturity ends, without additional subscriptions. To this end, a budget of 360.2 billion KRW has been secured for next year.

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