Deposit W18m, earn up to 2.16 million more: Youth Future Savings Account opens second round

Applications for the second enrollment round of the Youth Future Savings Account open Oct. 7. Those who missed the chance to switch from the Youth Leap Account during the first round will also get another opportunity to make the transfer.

The Financial Services Commission and the Korea Inclusive Finance Agency announced Wednesday that the second enrollment window will run from Oct. 7 to Oct. 16. After applications close, income and eligibility reviews will be conducted from Oct. 19 to Nov. 13, and those who pass will be able to open accounts from Nov. 16 to Nov. 27.

The Youth Future Savings Account lets subscribers deposit between 1,000 won and 500,000 won ($369) per month over three years, with the government adding a matching contribution and exempting interest income from tax. The government matches 6 percent of deposits under the standard tier and 12 percent under the premium tier. A subscriber who deposits 18 million won can accumulate up to 2.16 million won in government contributions and interest.

Eligibility is open to those between the ages of 19 and 34. For this round, applicants must have been born between Nov. 17, 1991, and Nov. 27, 2007, based on the account opening period. Those who completed military service may exclude up to six years of service from the age calculation.

Income requirements remain the same as in the first round. Eligible applicants include salaried workers earning up to 75 million won annually or self-employed individuals with annual revenue of up to 300 million won, provided their household income does not exceed 200 percent of the median. Income verification will be based on 2025 tax data confirmed by the National Tax Service. New employees at qualifying small and medium-sized enterprises and eligible self-employed individuals may apply under the premium tier.

On the first two days of the application period, an odd-even system based on birth year will apply. Those born in odd-numbered years may apply on Oct. 7, and those born in even-numbered years on Oct. 8. From Oct. 12 through Oct. 16, applications will be accepted regardless of birth year. Participating institutions include IBK Industrial Bank of Korea, Nonghyup, Shinhan, Woori, Hana, KB Kookmin, iM Bank, Busan Bank, Gyeongnam Bank, Gwangju Bank, Jeonbuk Bank, Suhyup Bank, Kakao Bank and Korea Post.

A key feature of this second round is that Youth Leap Account holders will have one more chance to switch. The two products cannot be held simultaneously, and enrollment in the Youth Future Savings Account is not permitted after the Youth Leap Account matures. However, subscribers who make a special early termination of their Youth Leap Account specifically to join the Youth Future Savings Account will retain the government contributions and tax-exempt interest benefits on their existing deposits.

The FSC said it created this second opportunity in response to continued requests from young people who missed the transfer window during the first round. A survey of 1,245 Youth Leap Account holders conducted last month found that 667 respondents, or 54 percent, said they wanted to switch.

Those wishing to transfer should apply for the Youth Future Savings Account, complete the eligibility review, receive confirmation of approval and open an account, then apply for a special early termination of their Youth Leap Account. Detailed procedures will be communicated separately to eligible applicants.

The application review process will also be strengthened. For premium-tier applicants employed at small and medium-sized enterprises, verification will be enhanced by cross-checking self-reported employment status against data from Korea Ratings Data, known as KoDATA. Preliminary review results will be shared with applicants before a final decision is made, and those whose application type does not match the outcome will be given a chance to provide an explanation. Server capacity and call center staffing will also be expanded to handle increased traffic.

Meanwhile, the government is pursuing plans to expand eligibility for the Youth Future Savings Account and raise the premium-tier government matching rate starting next year. If the relevant budget bill passes the National Assembly, the revised criteria will take effect from the third enrollment round, and existing subscribers will receive retroactive payments at the higher premium matching rate.

The inaugural enrollment period, which ran from June 22 to July 3, drew 2.343 million applicants. Of those, 1.547 million passed the eligibility review and 1.385 million ultimately opened accounts, meaning roughly 59 percent of applicants successfully enrolled.