FSC chief vows to more than double youth budget next year

Financial Services Commission Chairman Lee Eok-won said Monday that the government would more than double next year's youth support budget to about 2.1 trillion won ($1.52 billion), sharply expanding assistance in asset formation, employment and housing.

Lee made the announcement at the "Preview of 2027 FSC Youth Programs" event held that morning at Hanyang University in Seongdong-gu, Seoul, saying that "young people are facing many difficulties across a wide range of areas, including employment and asset formation."

He said the government would help young people build starter savings through the Child Independence Fund so they can enter adulthood with a financial foundation, while also expanding eligibility for the Youth Future Savings Account to all young people and strengthening its benefits.

Lee added that the FSC would focus on opening new pathways to employment and entrepreneurship for young people through the Youth Opportunity Fund, which provides financial support for job seekers, as well as through finance-specialized education for those preparing to enter the financial sector and commercialization support for fintech startups.

He also said the FSC would form a youth financial policy advisory panel to more actively gather input from young people throughout the entire process of planning, implementing and evaluating policy.

At the event, participants were introduced to six FSC youth programs set to be newly launched or restructured next year.

For young people entering adulthood, the Child Independence Fund will allow the government and parents to jointly build a financial foundation for a young person's start in society.

Under the program, the government contributes 1.2 million won per year from a child's birth through age 18. Assuming an annual return of 6 percent and annual contributions of 2 million won over 19 years, a lump sum of around 70 million won could be accumulated.

For those preparing to find jobs or start businesses, the Youth Opportunity Fund will provide financial support, while the Financial Innovation Employment and Startup Support Program will assist young people pursuing fintech entrepreneurship or careers in the financial sector through commercialization support and professional training.

The Youth Opportunity Fund offers low-interest loans of up to 5 million won per application and up to 7.5 million won per year, with a lifetime cap of 20 million won, to unemployed young people.

Interest payments will be waived for a grace period of up to eight years during the job-seeking or startup preparation phase, significantly reducing the repayment burden on young borrowers.

To support early asset formation around the time young people enter society, the Youth Future Savings Account will be expanded and restructured. Reflecting strong demand, eligibility will be extended to all young people, and the government contribution rate for the premium tier will be raised from 12 to 15 percent.

Young people hoping to purchase non-apartment housing such as officetels will be able to access homeownership more easily through the Youth Future Home Loan. The FSC also plans to provide low-interest jeonse and monthly rent financing through a combined youth rental guarantee program.

Financial authorities announced through the Aug. 13 real estate measures that loans supporting genuine demand — including those for young people — would be excluded from household lending caps. Banks have also been rolling out mid-interest-rate products and other offerings aimed at genuine borrowers.

At the event, Lee also heard suggestions from young attendees. One office worker said it was difficult for young people to save a lump sum given the overall burden of living and housing costs, and called for a universal asset-formation support policy for youth.

A young person preparing for employment said they had worried about having to take part-time work to cover living expenses, and said programs like the Youth Opportunity Fund — which allow young people to focus on their job search — were needed.