The Financial Services Commission said on the 21st that applications to enroll in the Youth Future Installment Savings, a policy finance product to support asset building for young people, will be accepted for two weeks from the 22nd to the 3rd of next month. Including government contributions and tax exemptions on interest income, participants can see an effect similar to signing up for an installment savings account with an annual rate of up to 19%.
Youth Future Installment Savings is open to young people ages 19 to 34 (born Jan. 1, 1991–Aug. 7, 2007). Enrollment is allowed only if the previous year's income is verified by the National Tax Service, and mandatory military service periods (up to six years) are excluded from age calculations for those who served.
For the standard type, which provides a 6% government matching contribution, general income earners with total annual salary of 60 million won or less (comprehensive income of 48 million won or less) and small business owners with annual sales of 300 million won or less are eligible. Among employees at small and medium-sized enterprises, those with total annual salary of 36 million won or less, new hires at small and medium-sized enterprises with total annual salary of 60 million won or less, and small business owners with annual sales of 100 million won or less can enroll in the preferred type, which offers a 12% government contribution. Enrollees must be at or below 150%–200% of the median household income standard.
The standard type offers an effect equivalent to signing up for a simple-interest installment savings account with an annual rate of 13.2%–14.4%, and the preferred type 18.2%–19.4%. Deposits are made for three years on a flexible schedule, up to a monthly maximum of 500,000 won.
Youth Future Installment Savings can be opened remotely through participating financial institutions' apps. From the 22nd to the 26th, applications will be accepted on a five-day rotation based on birth year: those whose birth year ends in 1 or 6 on the 22nd, 2 or 7 on the 23rd, 3 or 8 on the 24th, 4 or 9 on the 25th, and 5 or 0 on the 26th are eligible to apply.
Youth Future Installment Savings and the existing Youth Leap Account cannot be held concurrently. New enrollment is not allowed after the Youth Leap Account matures, but those already enrolled in a Youth Leap Account may switch to the Youth Future Installment Savings. Youth Future Installment Savings does not select enrollees on a first-come, first-served basis. However, if the number of applicants who meet the requirements exceeds the budgeted support capacity, enrollees will be selected in order of lower personal income.