🚨 Youth Future Savings

Today Korean Social News for Beginners | 2025.08.30

0️⃣ New Government Program to Help Young People Build Assets

📌 New 'Youth Future Savings' Program Created to Help Young People Save Money

💬 The Korean government announced it will spend 70 trillion won next year on programs to help with low birth rates, support young people, and deal with an aging population. One important new program is called 'Youth Future Savings' to help young people save money. Young people aged 19-34 can save up to 500,000 won per month, and the government will add extra money to match their savings. This program is for young people who earn less than 60 million won per year. Regular young people and small business owners get 6% extra from the government, while young people who work at small companies for 3 years get up to 12% extra. This will really help young people save money for their future.

💡 Summary

• Youth Future Savings is a government program that helps young people aged 19-34 build their savings.
• When young people save up to 500,000 won per month, regular young people get 6% extra and small company workers get 12% extra from the government.
• This program is for young people earning under 60 million won per year and starts in 2026 to help young people become financially independent.

1️⃣ What is Youth Future Savings?

Youth Future Savings is a program where young people aged 19-34 save money each month and the government adds extra money to help them save more. The main idea is that when young people work hard to save money, the government helps them by adding more money to their savings account.

This program helps young people who are having financial difficulties and helps them build a strong financial foundation for their future. Instead of just giving money to young people, this program combines their own savings efforts with government support to create a better result.

💡 Why is this important?

• It's a key program to help young people become financially independent and plan for their future.
• In times of low interest rates, government matching provides much better returns than regular savings.
• It helps young people develop good saving habits while building long-term wealth.
• It helps young workers save money for housing, marriage, and other important life expenses.

2️⃣ Program Details and Benefits

📕 Who Can Join and Requirements

• There are clear age and income requirements. The main qualifications are:

  • Any Korean citizen aged 19-34 can apply.
  • Young people who earn less than 60 million won per year can join, focusing on those who really need financial help.
  • There are no job restrictions - employed people, job seekers, university students, and small business owners can all join.
  • You can usually join this program even if you have other youth financial products.

• There are savings limits and payment methods. The main details are:

  • You can save up to 500,000 won per month, so you can adjust based on your financial situation.
  • The minimum monthly saving will be 100,000 won, making it less burdensome.
  • You can save up to 6 million won per year, allowing for significant wealth building.
  • If you can't save money some months, you can pause or stop payments, giving you flexibility.

📕 Government Matching System

• Government support varies based on your job and how long you've worked. The main support rates are:

  • Regular young people and small business owners: The government adds 6% of what you save.
  • Young people newly hired at small companies: If you work for 3+ years, you get up to 12% from the government.
  • If you save 500,000 won per month, regular young people get an extra 30,000 won monthly, and small company workers get an extra 60,000 won monthly.
  • You can get up to 720,000 won per year in government support (for small company workers).

• This creates a big improvement in your returns. The main advantages are:

  • While bank savings accounts pay 3-4% interest, adding government matching gives you much higher returns.
  • Small company workers get guaranteed 12% additional returns just from government support.
  • When you consider compound interest, this creates very good long-term wealth building.
  • This also helps protect your purchasing power against inflation.

💡 Key Features and Benefits of Youth Future Savings

1. High Returns: Government matching provides much better returns than regular financial products
2. Flexible Payments: You can save 100,000-500,000 won per month based on your situation
3. Different Support Levels: Small company workers get higher 12% matching
4. Long-term Benefits: 3-5 year terms are perfect for medium to long-term wealth building
5. Government Support: A stable program that reflects the government's priority on youth policies

3️⃣ When It Starts and How to Apply

✅ Program Launch and Implementation Plan

• The program will officially start in 2026. The main timeline is:

  • In the second half of 2025, related laws and regulations will be completed.
  • From late 2025, there will be advance promotion and agreements with banks.
  • Starting January 2026, banks and post offices nationwide will accept applications.
  • Initially, it will start with major commercial banks and gradually expand to regional banks and credit unions.

• Sufficient budget and institutional foundation have been prepared. The main preparations include:

  • The government has allocated about 1 trillion won per year in budget to support Youth Future Savings.
  • About 2 million young people are expected to benefit from this program.
  • They plan to use existing youth policy organizations to create a stable operating system.
  • They will also introduce digital platforms for easy application and management.

✅ How to Apply and Required Documents

• You can apply through simple procedures. The main application methods are:

  • You can apply in person by visiting bank branches nationwide.
  • Online applications through internet banking and mobile banking are also supported.
  • Post offices and banks like Nonghyup and Shinhyup will also accept applications.
  • Comprehensive consultation and application support through dedicated youth policy offices will also be provided.

• You only need minimal documents to apply. The main required items are:

  • You need basic identification documents like your ID and resident registration.
  • You need to submit income proof like withholding tax receipts or business income reports.
  • Small company workers need to prepare additional documents like employment certificates and 4-major insurance confirmation.
  • University students or job seekers can substitute with enrollment certificates or unemployment benefit confirmation.
  • All documents can be issued and submitted electronically through Government24 or Hometax.

4️⃣ Related Terms Explained

🔎 Youth Basic Act

• This is the basic law that provides the legal foundation for youth policies.
  • The Youth Basic Act is a law enacted in February 2020 to support young people's rights and increase their social participation so they can grow into healthy members of society. Young people are defined as those aged 19-34, and local governments can adjust the upper age limit through city/province ordinances considering regional and sector-specific characteristics.
  • The main contents include: First, establishing basic youth policy plans for systematic support measures. Second, providing comprehensive support for youth employment, entrepreneurship, housing, education, culture, and welfare. Third, establishing the Youth Policy Coordination Committee for government-wide policy coordination. Fourth, establishing local governments' obligations to support youth and the legal basis for establishing youth centers.
  • Youth Future Savings is a representative policy promoted based on Article 16 of this law (Support for Youth Asset Formation). It is evaluated as a system that aligns with the basic purpose of the law: establishing a foundation for youth independence and expanding social participation.

🔎 Youth Hope Savings

• This was the predecessor program to Youth Future Savings for asset formation support.
  • Youth Hope Savings was a temporary youth asset formation support policy operated from 2022 to 2024, where the government provided savings incentives for amounts deposited by young people below certain income levels. It targeted young people aged 19-34 with individual income below 36 million won (household income below 60 million won).
  • The program details included: First, deposits of up to 500,000 won per month were possible for 2 years. Second, the government provided up to 2% annual savings incentives. Third, at maturity, participants received their principal, interest, and savings incentives. Fourth, early withdrawal resulted in no savings incentives, encouraging long-term saving.
  • Youth Hope Savings attracted about 1.3 million subscribers and received considerable positive response, but it ended as a temporary project. Based on this experience, the more advanced Youth Future Savings was designed with significantly expanded matching support rates, making it much more effective.

🔎 Youth Tomorrow Filling Mutual Aid

• This is a government-company joint support system to encourage young people to stay at small companies.
  • Youth Tomorrow Filling Mutual Aid is a system where the government, companies, and young people jointly contribute to encourage young people working at small companies to stay longer and help them save money. Young people aged 15-34 who get regular jobs at small companies with 5 or more regular employees can join.
  • The operating method includes: First, when young people contribute 125,000 won monthly, companies add 178,000 won and the government adds 197,000 won. Second, at 2-year maturity, young people receive about 12 million won, and at 3-year maturity about 20 million won. Third, if they change jobs or quit before maturity, they only receive their own contributions and interest, encouraging continued employment.
  • Youth Tomorrow Filling Mutual Aid has contributed to youth employment stability since its introduction in 2016, with about 600,000 people joining. While it's separate from Youth Future Savings, it has similar policy goals like providing 12% matching for small company workers, so they will operate in a complementary way.

5️⃣ Frequently Asked Questions (FAQ)

Q: Can I join Youth Future Savings along with other existing youth financial products?

A: You can generally join multiple programs, but there may be some restrictions.

• Since Youth Future Savings is a new program separate from existing programs like Youth Hope Savings or Youth Tomorrow Filling Mutual Aid, there shouldn't be restrictions on joining multiple programs. First, Youth Tomorrow Filling Mutual Aid is only for small company workers, so regular young people are naturally in different categories. Second, you should be able to join separately from existing products like Youth Leap Accounts or Youth Housing Subscription Savings. Third, however, considering government financial burden, there might be total support limits or restrictions by income brackets.
• However, the final decision on multiple program participation will be confirmed during the enforcement decree process in the second half of 2025. Therefore, people who have already joined other youth benefit products should be able to receive additional benefits when Youth Future Savings launches.

Q: If I change from a small company to a large company, will I lose the 12% matching benefit?

A: Benefits will likely vary depending on how long you worked and when you change jobs.

• Since the 12% matching benefit for young people newly employed at small companies requires 3 years of service, the treatment will vary depending on when you change jobs and how long you worked. First, if you change jobs after completing 3 years of service, you'll likely keep all existing benefits. Second, if you change jobs before 3 years, the 12% matching for that period might be recovered and converted to the regular 6% matching for general young people. Third, after moving to a large company, you'll likely only receive the 6% matching for regular young people.
• However, these detailed criteria haven't been finalized yet, and reasonable standards will be established considering the balance between young people's job choice rights and encouraging continued employment. For accurate information, it's best to check the detailed guidelines announced before the program starts.

Q: Can I withdraw money early if I need a lump sum before maturity?

A: Early withdrawal will be possible, but there will likely be restrictions on government matching benefits.

• Like other savings products, Youth Future Savings will likely allow early withdrawal, but there may be certain constraints due to the nature of government support. First, the principal and interest deposited by the young person should be withdrawable anytime. Second, however, government matching support will likely be designed so you can only receive it by maintaining the account until maturity. Third, for partial withdrawals, you might be able to give up government support for that portion while maintaining the rest.
• Early withdrawal conditions will be determined considering the balance between young people's life stability and encouraging long-term savings. For example, there might be reduced early withdrawal penalties for specific purposes like marriage, childbirth, home purchase, or education expenses. Specific early withdrawal conditions and methods will be detailed before the program starts, so please pay attention to official announcements.

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