Youth Future Savings Account Launches in June: Government to Match Up to 12% on Monthly Deposits of 500,000 Won

Tax-Exempt, Three-Year Fixed-Rate Product for Ages 19 to 34

The "Youth Future Savings Account," a new product allowing young people aged 19 to 34 to make flexible monthly deposits of up to 500,000 won, with the government matching up to 12% as a contribution, will be launched in June 2026.

On April 23, the Financial Services Commission held a pre-launch review meeting with relevant organizations, including the Korea Inclusive Finance Agency, and disclosed detailed information about the new product.

The Youth Future Savings Account is open to those defined as youth (aged 19–34) under the Framework Act on Youth. For individuals who have completed military service, the period of service (up to six years) is excluded from the age calculation. For example, someone who is 35 years old but served in the military for two years would be considered 33 years old and thus eligible to participate. In addition, anyone who turns 35 between the end of enrollment for the Youth Leap Account (December 2025) and the launch of the Youth Future Savings Account will be exceptionally permitted to join.

This is a three-year maturity account with a flexible deposit structure, allowing participants to deposit up to 500,000 won per month at their discretion. The government will match the deposit with a contribution, and interest will be accrued on both the principal and the government contribution. Interest income tax will be exempted, and the interest rate will be a fixed rate for three years, to be determined at a later date.

Eligibility is limited to those with a total annual salary of 75 million won or less (comprehensive income of 63 million won or less), or small business owners with annual sales of 300 million won or less. Additionally, applicants must have a household income at or below 200% of the median. Depending on the applicant’s income level and employment type, the government’s matching contribution will range from 6% to 12% of the deposit.

Income and sales criteria are assessed based on the previous year, and certain industries may be excluded from preferential treatment.

Starting in June, applications for the Youth Future Savings Account can be made non-face-to-face via the participating financial institutions’ applications (hereafter, apps). New enrollments will be accepted twice a year, in June and December.

After enrollment, there will be no further review of income or sales criteria, but preferential benefits for employees of eligible small and medium-sized enterprises require continued employment. To maintain preferential status, participants must remain employed for at least 29 months by one month prior to maturity, with up to two job changes permitted.

Concurrent enrollment in the Youth Leap Account is not allowed, but account conversion between products will be permitted during the initial enrollment period in June. However, concurrent enrollment with products from other ministries or local governments, such as the Youth Tomorrow Savings Account, is allowed.

In principle, early withdrawal will result in the forfeiture of government contributions and tax benefits. However, exceptions will be made in cases of unavoidable circumstances such as death, emigration, retirement, business closure, or illness, allowing participants to retain these benefits.

An official from the Financial Services Commission stated, “The Youth Future Savings Account is a flagship asset-building support product designed to help young people achieve stable asset growth and economic independence,” and added, “We ask all participating institutions to actively promote and guide this product so that young people are fully aware and do not miss out on any benefits.”

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