More than 2 million individuals have applied for the Youth Savings Program just 11 days after its launch. As of 1 p.m. on July 2, the Financial Services Commission and the Korea Inclusive Finance Agency reported that a total of 2,012,000 applications had been submitted since the program began accepting applications on June 22.
Applications will remain open until July 3. Young people, regardless of their birth year, can apply, provided they meet the eligibility criteria.
Following the application period, eligibility reviews will take place from July 6 to July 24. Results will be communicated individually to applicants on July 24. Those who pass the review will be able to open accounts from July 27 to August 7.
Once accounts are opened, participants can make monthly contributions ranging from 1,000 to 500,000 won.
During this initial application period, switching from the Youth Leap Account to the Youth Savings Program is permitted. In such cases, the government contributions, tax exemptions on interest income, and preferential interest rate benefits associated with the existing Youth Leap Account will be retained. Requirements for preferential interest rates, such as salary transfers that have already been met or partially fulfilled, will also be recognized.
Participants in the Youth Savings Program will not only benefit from government contributions and tax exemptions but also receive a boost to their credit scores. After two years of participation and a total contribution of over 8 million won, applicants will receive an increase of 5 to 10 points in their credit scores. For those switching from the Youth Leap Account, the duration of their previous membership and contributions will also be considered in the calculation.
Starting in July, participation in the 'Financial Counseling for All Youth' initiative will provide an additional 0.2 percentage point preferential interest rate.
* This article has been translated by AI.
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