People Power Party's Kim Sanghoon Proposes 'Junior ISA' Bill for Under-19s... Annual 3.6 Million Won Limit on Tax-Free Gifts, Interest, and Dividends

by Gu Daeseon

Published 27 Apr.2026 10:10(KST)

Kim Sanghoon, member of the People Power Party (representing Seo District, Daegu and chairman of the Party's Special Committee on Stock and Digital Asset Value-Up), announced on April 27 that he has proposed an amendment to the Restriction of Special Taxation Act to introduce the 'Junior ISA System,' aimed at supporting long-term asset formation for the next generation.

Under current law, interest and dividend income generated from an ISA (Individual Savings Account) is tax-exempt up to either 2 million won or 4 million won, depending on income level, while any amount exceeding this threshold is subject to a separate 9.9% tax rate (including local income tax).

Kim Sanghoon, member of the People Power Party

Although the current ISA is a long-term investment product, limited tax benefits make it difficult to expand investment funds, and the scheme is restricted to adults and working youth, excluding children under 19. This has led to calls for the introduction of an ISA for minors, known as the 'Junior ISA.'

The proposed amendment stipulates that children and adolescents under the age of 19 can subscribe to a Junior ISA and contribute up to 3.6 million won per year (equivalent to an average of 300,000 won per month). Contributions will be exempt from gift tax until the beneficiary turns 19, and interest and dividend income generated within the account will also be tax-exempt.

Major countries overseas have already introduced and operate junior ISAs. The UK's Junior ISA (JISA) targets those under 18 and allows all interest, dividends, and capital gains to be tax-exempt up to an annual limit of 9,000 pounds (approximately 18 million won). Japan's 'Minor NISA' also targets those under 18, offering tax exemption on up to 600,000 yen (approximately 5.6 million won) per year and a lifetime limit of 6 million yen (approximately 56 million won).

Kim Sanghoon stated, "If Korea introduces a junior ISA system like other major countries, it will support asset formation for the next generation and also have early financial education effects." He added, "Once the system is established, it can contribute to fostering a sound long-term investment culture that covers the entire life cycle."