Youth Future Savings Account tops 1 million applicants in 5 days

A screen in the lobby of Woori Bank's branch in Jung-gu, Seoul. [Yonhap]
A screen in the lobby of Woori Bank's branch in Jung-gu, Seoul. [Yonhap]

More than 1 million young Koreans applied for the Youth Future Savings Account within five days of its launch on Monday.

The Financial Services Commission and the Korea Inclusive Finance Agency said Friday that as of 1 p.m. on the 26th, the number of applicants had reached 1.012 million. The product allows subscribers to enjoy the equivalent of a savings account yielding up to 19 percent annually, combining a base interest rate with government contributions and a tax exemption on interest income.

During the first five business days of the application period — Monday through Friday — sign-ups were accepted on a rotating basis by the last digit of applicants' birth year. Starting June 29 through July 3, anyone will be able to apply freely between 9 a.m. and 6:30 p.m., regardless of birth year.

An income and eligibility review will then run from July 6 to July 24, and applicants who pass will be able to open accounts and begin making deposits from July 27 to Aug. 7. Authorities said they plan to operate the program so that all eligible young people among the applicants can enroll.

Meanwhile, a 2025 youth finance survey released by the Korea Inclusive Finance Agency found that as of the end of September last year, the delinquency rate of 30 days or more among subscribers to the Youth Leap Account — the predecessor to the Youth Future Savings Account — stood at 0.6 percent, about two-thirds the 0.9 percent rate for young Koreans overall.

Account holders also had an average delinquency period of 126.1 days per delinquent account, shorter than the 156.9-day average for all young Koreans. The average delinquent amount was 12 million won ($7,770), below the overall youth average of 12.9 million won. "The share of Youth Leap Account holders who experienced delinquency of 30 days or more was also 3.0 percent, lower than the 3.2 percent for young Koreans as a whole," the report said. "A comprehensive review of delinquency history and current delinquency status suggests that the Youth Leap Account subscriber group carries a relatively lower delinquency risk."

Are young Koreans really only into stocks? Those who saved steadily had less debt and stronger credit scores.


forest@heraldcorp.com