The Youth Future Savings account, touting an annual maximum interest rate of 19.4%, succeeded in its first subscription period. Although the allocated budget remains, the final execution scale will need to be watched with the second application round in December still ahead.
According to the financial authorities on the 8th, about 2,343,000 people applied in the first round to sign up for the Youth Future Savings account. Compared with the initial applicants for the previously introduced youth policy financial product, the Youth Leap Account, the figure is about three times higher. The Youth Future Savings account has a maturity of three years, shorter than the Leap Account's five years, which is cited as a driver of its popularity. The authorities will verify applicants' income and employment status and notify eligible subscribers of the screening results by the 24th.
The financial authorities expected 3.2 million people to join and allocated a budget of 744 billion won. The first-round applicant count fell short of that, but the total budget also reflects the second-round applications starting in December this year. The 744 billion won was set based on 1.6 million standard-type subscribers and 1.6 million preferential-type subscribers; if the screening results increase the number of preferential-type subscribers, the size of the government's contribution burden could grow.
As the first-round budget remained, some predicted that conditions would be eased in the second round, such as raising the subscription age. However, the financial authorities said they set the subscription age based on the youth criteria specified in the Framework Act on Youth and are not considering expanding the age range.