The development momentum for the Youth Leap Account Season 2, a policy push by financial authorities this year, is waning alongside the impeachment of former President Yoon Suk-yeol. Given that the Youth Leap Account was a flagship financial policy of the Yoon government, adjustments to the policy following the regime change are expected.
According to the financial sector on the 20th, the Financial Services Commission has not yet finalized the release date or target disclosure date for the investment-type Youth Leap Account. Earlier this year, the Commission believed that a concrete product outline would be available around the end of the year, but the development timing has now reverted to being undecided. The external environment for the Commission has changed to an election climate following former President Yoon's impeachment, and internal changes within the organization, including recent department head replacements, seem to have weakened the drive for policy implementation.
The investment-type Youth Leap Account is known as Youth Leap Account Season 2. The existing Youth Leap Account product is a savings plan where money is deposited monthly to create a lump sum. The investment-type product allows investment in financial investment products based on seed money. Although a specific product structure has not been released, it is reported that a plan providing tax benefits similar to the savings-type products was discussed. The savings-type product also increased benefits for subscribers by exempting the tax (15.4%) that applies to general savings interest.
The Ministry of Economy and Finance announced in January its economic policy direction for 2025, stating that it would consider the investment-type Youth Leap Account and set the target disclosure date for the second half of the year. The Financial Services Commission also began development of the investment-type product, buoyed by the success of the savings-type product this year. However, a cautious atmosphere is detected internally within the Commission following former President Yoon's impeachment. Since the Youth Leap Account was a hit product in Yoon Suk-yeol's financial policy, it seems burdensome to maintain the brand while actively promoting and implementing new policies.
There remains the possibility that the investment-type product will be promoted again, changing only the policy name according to the new government's tastes. The predecessor of the Youth Leap Account was the Youth Hope Savings of the Moon Jae-in administration, and former President Yoon promised to enhance the benefits of the Youth Hope Savings and introduce a product that also allows investment during his presidential campaign. As youth asset formation is a major agenda common to both ruling and opposition parties, the next administration may follow suit by replacing the Youth Leap Account brand and discussing product expansion.
Meanwhile, regardless of the regime change, the Financial Services Commission plans to continue accepting new subscriptions for the savings-type product in the future. A Commission official noted, "We have the budget allocated for this year, and given the popularity among the youth, we will continue to maintain the savings-type product." This official also responded regarding the possibility of changing the policy name, stating, "It is difficult to make a hasty prediction at this point."