Low-income youth enrolled in the government's Youth Tomorrow Savings Account program saw improvements in financial health, with income and savings rising during their participation, according to a new analysis.
The Ministry of Health and Welfare said Thursday it analyzed socioeconomic changes among 3,241 people who joined the Youth Tomorrow Savings Account program in 2022 and 2023, tracking shifts before and after their enrollment.
The Youth Tomorrow Savings Account is an asset-building product designed to help low-income working youth accumulate a lump sum. Participants who save consistently receive matching government contributions based on household and earned income, with the account maturing after three years.
Among 2022 enrollees, total monthly income rose from 1.83 million won ($1,290) in 2022 to 2.35 million won in 2025 — a gain of 521,000 won, or 28.5 percent. Those who joined in 2023 saw monthly income climb from 1.98 million won to 2.51 million won, an increase of 525,000 won, or 26.5 percent.
Monthly savings also increased. The 2022 cohort saved an average of 369,000 won at enrollment and 494,000 won by 2025, a rise of 125,000 won, or 33.9 percent. The 2023 cohort went from 478,000 won to 573,000 won, up 95,000 won, or 19.9 percent.
Employment stability also improved. The share of enrollees in regular, full-time positions rose 4.1 percentage points — from 41.1 percent to 45.2 percent — among the 2022 cohort, and 7.1 percentage points — from 42.7 percent to 49.8 percent — among the 2023 cohort.
Earned income followed a similar trend. The 2022 enrollees saw earned income rise from 1.35 million won to 1.78 million won, a gain of 432,000 won, or 32.0 percent. For the 2023 cohort, earned income grew from 1.58 million won to 1.93 million won, up 348,000 won, or 22.1 percent.
The ministry also found that the share of enrollees living in owner-occupied homes and in standard or public rental apartments consistently rose, and residential satisfaction trended upward, pointing to an overall improvement in housing conditions.
"We will continue to develop the program so that it more effectively supports the independence of low-income working youth," said Kim Mun-sik, the ministry's welfare policy director.
thlee@heraldcorp.com
