Save 5.4 million won, get it doubled: Seoul's youth savings program opens enrollment

By Shin Sang-yoon, The Herald Business

The Seoul Metropolitan Government announced it will recruit new participants for its "Hope Doubled Youth Account" and "Kkumnare Account" programs from June 8 through June 19.

The Hope Doubled Youth Account helps working young adults build a lump sum, while the Kkumnare Account supports parents in saving for their children's education costs. The city is recruiting 10,000 participants for the youth account and 300 for the Kkumnare Account. Applications are available through the Seoul Metropolitan Government's asset-building support project website.

Under the Hope Doubled Youth Account, participants who save 150,000 won ($98) a month for two or three years receive a matching contribution funded by the city budget and private donations. Those who save for the full three years accumulate 5.4 million won of their own, which the city matches with an additional 5.4 million won — yielding a total of 10.8 million won plus interest.

Applicants must be Seoul residents between the ages of 18 and 34 who can document at least three months of employment in the past year. Their pre-tax monthly income must not exceed 2.55 million won, their legal dependents' annual income must be under 100 million won, and household assets must be below 900 million won.

The Kkumnare Account helps families set aside money for children's education. Participants save either 50,000 won or 100,000 won a month over three or five years, and the city adds 50 percent on top of whatever they save. Households with three or more children may save up to 120,000 won per month.

Eligible applicants are Seoul-resident parents aged 18 or older who are raising children 14 or younger, with household income between 50 percent and 80 percent of the median income standard. Basic livelihood recipients and near-poverty households are excluded, and each household may apply for only one child.

Final participants will be announced Nov. 3 after eligibility screening and income and asset reviews. They will then sign agreements and begin saving in November.

The city also provides enrolled account holders with 32 types of financial education covering year-end tax settlements, insurance management and more. A Seoul Metropolitan Government official said the city introduced a public MyData service this year, making it easier for applicants to submit documents such as family relationship certificates and national insurance enrollment records.

Last year, the Hope Doubled Youth Account drew 48,338 applicants for 10,000 spots — a competition ratio of roughly 4.8 to 1. The Kkumnare Account attracted 2,793 applicants for 300 places, a ratio of about 9.3 to 1.

To date, 22,788 people have completed their savings term under the Hope Doubled Youth Account and 14,830 under the Kkumnare Account, with 27,472 currently enrolled across both programs.

"The Hope Doubled Youth Account and the Kkumnare Account are representative self-sufficiency programs that reward participants in proportion to the effort they put into saving," said Park Won-geun, head of the Seoul Metropolitan Government's welfare policy division. "We will continue to support the next generation in easing their financial burdens."