Youth Leap Account, 1.23 Million Subscribers... Average Contribution Received 170,000 Won

Effect of Joining a Savings Account with 6.9% Annual Interest for 3 Years

On the 15th, when the 'Youth Leap Account,' which allows you to save 700,000 won monthly for 5 years to accumulate up to 50 million won, was launched, Kim So-young, Vice Chairman of the Financial Services Commission, visited the Youth Leap Account Non-face-to-face Consultation Center in Jung-gu, Seoul, and spoke with the consultants. Photo by Kang Jin-hyung aymsdream@

Approximately 1.23 million young people have signed up for the 'Youth Leap Account,' launched to promote asset formation among the youth, over the past 10 months. The average payment by subscribers was 4.69 million KRW, and they received an average government contribution of 170,000 KRW, according to the survey.

On the 22nd, the Financial Services Commission announced that it held a 'Youth Leap Account Operation Review Meeting' at the non-face-to-face consultation center for the Youth Leap Account located in Jung-gu, Seoul, chaired by Vice Chairman Kim So-young, with related agencies and youth participants.

According to the FSC, as of the end of April, the number of Youth Leap Account subscribers was 1.23 million, with an average age of 28.1 years. The average payment balance of subscribers was 4.69 million KRW (including lump-sum payments, excluding contributions), and the average government contribution was 170,000 KRW.

Since the introduction of the Youth Leap Account, authorities have pursued several system improvements. The eligibility was expanded to include young people on parental leave and those fulfilling military service, and marriage and childbirth were added as special reasons for early termination. Additionally, the household income requirement was relaxed from 180% to 250% of the median income.

In particular, the banking sector raised the early termination interest rate applied when maintaining the Youth Leap Account for more than three years from the initial 1.0?2.4% range to the basic interest rate level of 3.8?4.5% for each bank’s Youth Leap Account. This rate is higher than the banks’ three-year fixed deposit interest rates (3.0?3.5%).

Accordingly, if a subscriber maintains the Youth Leap Account for three years, the increased early termination rate, along with a partial government contribution (60%) and tax exemption on interest income, is expected to yield a return equivalent to subscribing to a general savings account with an annual interest rate of 6.9%, the authorities explained.

Meanwhile, the Korea Inclusive Finance Agency announced plans to operate a 'One-Stop Youth Financial Consulting Center (tentative name)' scheduled to open in the second half of this year. In June, a priority face-to-face consultation center for the Youth Leap Account will open to strengthen counseling support for youth with visual and hearing impairments and financially vulnerable youth. In the second half of the year, this will be reorganized into the One-Stop Youth Financial Consulting Center to serve as a hub supporting youth financial situation assessment, credit and debt management consulting, and asset management.

Vice Chairman Kim said, "Going forward, the Youth Leap Account should serve as the foundation and anchor of asset formation and accumulation for the youth." He added, "In June, we plan to form focus groups consisting of diverse youth participants to collect their perceptions, usage experiences, and ideas regarding the Youth Leap Account through interviews and discussions."

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