Starting next year, the government contribution for the Youth Leap Account will increase from a maximum of 24,000 won per month to 33,000 won. This means an additional maximum of 600,000 won will be received upon maturity after five years, which can have the same effect as enrolling in a savings product with an annual interest rate of 9.54%. Beginning next month, young people who meet certain conditions will automatically receive a credit score of 5 to 10 points.
The Financial Services Commission noted on the 26th that starting from January next year, the support for contributions to the Youth Leap Account will be expanded to a maximum of 33,000 won per month (up to a maximum of 1.98 million won over five years). This is an increase of 9,000 won from the current maximum of 24,000 won (approximately 1.44 million won over five years), with a budget of 347 billion won for this program next year. This applies not only to new members but also to those who joined before January next year.
The Youth Leap Account is a savings product with a maturity of five years that allows contributors to freely deposit up to 700,000 won each month. The interest provided by the bank is supplemented by the government contribution, and the interest income is tax-exempt. The contribution is determined based on matching ratios, matching limits, and deposit amounts according to individual income levels.
Starting from January next year, the matching limit will be expanded to the deposit limit across all income brackets (from 400,000 won/500,000 won/600,000 won to a monthly limit of 700,000 won). Contributions will be paid within the expanded range (400,000 won to 700,000 won/500,000 won to 700,000 won/600,000 won to 700,000 won) at a matching rate of 3.0%. Consequently, a young person with an annual income of 24 million won who deposits 700,000 won monthly will receive the contribution for the expanded matching limit (400,000 won to 700,000 won) as well, resulting in a total contribution of 33,000 won, which is an increase of 9,000 won (30,000 won × 3.0%) from the existing 24,000 won.
From next year, under the revised Tax Special Treatment Limitation Act, individuals can receive tax-exempt benefits and 60% of the contribution even if they withdraw early, as long as they maintain their membership for three years or more.
Additionally, if individuals maintain their membership in the Youth Leap Account for more than two years and contribute more than 8 million won, they will automatically receive a credit score increase of 5 to 10 points. The partial withdrawal service, which allows for withdrawals within 40% of the deposited principal after maintaining membership for more than two years, will be implemented in the second half of next year.