Applications for the Youth Future Savings Account, aimed at supporting asset formation among young people, will begin on June 22. Current holders of the Youth Leap Account must first open a Youth Future Savings Account before closing their Leap Account to switch over.
The Financial Services Commission and the Korea Inclusive Finance Agency announced on June 15 the eligibility criteria, application schedule, and switching procedures for the Youth Future Savings Account.
Applications can be submitted through the financial institutions' apps from June 22 to July 3. During the first week, a five-day system based on the last digit of applicants' birth years will be in effect. On June 22, those born in years ending in 1 or 6 can apply; on June 23, those born in years ending in 2 or 7; on June 24, those born in years ending in 3 or 8; on June 25, those born in years ending in 4 or 9; and on June 26, those born in years ending in 5 or 0. From June 29 onward, applications will be accepted regardless of birth year.
Eligibility and income assessments will take place from July 6 to July 24, with results communicated individually on July 24. Successful applicants must open their accounts between July 27 and August 7. While applications are not on a first-come, first-served basis, if the number of applicants exceeds the government contribution budget, selections may prioritize those with lower incomes.
Initially, individuals born between January 1, 1991, and August 7, 2007, are eligible to apply. Notably, those born between August 8 and December 31, 1991, must apply during this period to avoid exceeding the age limit in the second recruitment scheduled for December.
General wage earners can apply through their bank apps without additional documentation. However, small business owners must obtain a 'Small Business Confirmation Certificate' for all operating establishments before applying, which typically takes about seven days to issue.
Switching from the Youth Leap Account is only permitted during this initial recruitment period. Applicants must open a Youth Future Savings Account after passing the application and assessment process, and then separately apply for the special early termination of their Leap Account. Closing the Leap Account before opening the Youth Future Savings Account will not be recognized as a switch.
Those who opt for special early termination will retain the tax-exempt benefits on existing government contributions and interest income. However, transferring the refund from the Leap Account as a lump sum into the Youth Future Savings Account is not allowed.
The Youth Future Savings Account can be applied for at 14 institutions, including KB Kookmin Bank, Shinhan Bank, NH Bank, Hana Bank, and Woori Bank. Toss Bank is expected to begin offering it in December, while Kakao Bank will accept applications for a maximum of 200,000 accounts.
* This article has been translated by AI.
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