Second Round of Applications for Youth Future Savings Account to Open on October 7; Application Screening System Improved

The Financial Services Commission (FSC) announced today (September 16) that it will accept second-round applications for the Youth Future Savings Account from October 7 to 16.

Applications will be accepted on October 7 for those whose birth year ends in an odd number, and on October 8 for those whose birth year ends in an even number. From October 12 to 16, anyone can apply regardless of their birth year.

Application screening will take place from October 19 to November 13, and results will be notified to applicants.

Those who pass the screening can open an account from November 16 to 27.

During the initial recruitment period of the Youth Future Savings Account (June 22 to July 3), 1.385 million applicants successfully completed their final subscription.

The FSC stated that it had reviewed additional operations due to continued high demand, including ongoing inquiries about additional subscriptions after the recruitment ended.

The Youth Future Savings Account is a three-year maturity, flexible installment savings product that allows users to deposit up to 500,000 won per month.

The government provides matching contributions of 6% or 12%, and interest income tax is exempted.

Eligible applicants are young adults aged 19 to 34.

For those who have completed mandatory military service, the period of service (up to 6 years) is excluded when calculating age.

Income requirements remain the same as the initial recruitment: applicants must have a total annual income of 75 million won or less, or be small business owners with annual sales of 300 million won or less, while also falling within 200% of the median household income.

An additional opportunity will be provided for existing subscribers of the Youth Leap Account to switch to the Youth Future Savings Account.

Youth wishing to switch can complete the application and screening process for the Youth Future Savings Account, open an account, and then apply for a special early termination of their Youth Leap Account.

The FSC and the Korea Inclusive Finance Agency explained that they have improved inconveniences encountered during the initial screening process, such as strengthening the verification system for preferential types targeting small and medium-sized enterprise (SME) employees.

During the first recruitment, eligibility screening errors occurred because some applicants, such as public officials eligible for the general type, were incorrectly guided toward the preferential type intended for SME employees.

Financial Services Commission Chairman Lee Eok-won officially apologized during a National Assembly Political Affairs Committee meeting last month.

Accordingly, applicants will now be required to directly select whether they are employed by an SME during the application stage, and a mutual verification system will be implemented to enhance screening accuracy. In addition, preliminary screening results will be provided to applicants before the final results are confirmed, giving them an opportunity to provide explanations if necessary.

Furthermore, servers will be upgraded to prepare for a surge in web traffic on the Youth Future Savings Account webpage during the screening period, and the number of customer service representatives at the Korea Inclusive Finance Agency call center will be increased to respond promptly to applicant inquiries.

Meanwhile, next year's government budget bill for the Youth Future Savings Account has been submitted to the National Assembly, containing provisions to expand eligibility to all youth and raise the government contribution rate for the preferential type.

The FSC stated that once the budget bill is finalized through deliberation by the National Assembly, a third round of recruitment is planned to be held following revisions to the screening system and regulations.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.