If low-income youth working save 1,000,000 won each month to reach a total of 3,600,000 won, the government will provide additional support to create a total of 14,400,000 won (excluding interest) through the new recruitment for the 'Youth Tomorrow Savings Account.'
The Ministry of Health and Welfare announced on the 1st that it will recruit new members for the Youth Tomorrow Savings Account from the 2nd to the 21st. The Youth Tomorrow Savings Account is a government program that supports consistent savings for working low-income youth, helping them establish a stable asset base.
The support types are divided into two categories based on household income levels. First, if working youth (50-100% of median income) save their own amount (100,000 to 500,000 won) each month, the government will support an additional 100,000 won per month, leading to a total saving of 7,200,000 won (assuming personal savings of 3,600,000 won) and the savings interest (up to an annual interest rate of 5%) upon maturity after three years.
Youth beneficiaries in the basic livelihood security recipients and lower-income tier (below 50% of median income) will receive government support of 300,000 won per month. Upon maturity after three years, they will receive a total of 14,400,000 won (assuming personal savings of 3,600,000 won) along with savings interest (up to an annual interest rate of 5%).
This program started in 2022 and marks its fourth year this year. So far, 120,000 people have enrolled, and 40,000 will be newly recruited this year.
The government has relaxed the earned income standards this year to lower the enrollment threshold. It raised the upper limit of the earned income and business income criteria from 2,300,000 won to 2,500,000 won. An online application feature has also been established to facilitate easy processing of suspension of savings applications and maturity payment terminations after the three-year term.
Youth wishing to apply can do so through the online welfare portal website operated by the Ministry of Welfare or by visiting the administrative welfare center in their local district. The selection results for the beneficiaries will be notified via individual text messages in August. A Ministry official noted, “For those applying in person at the administrative welfare center, congestion is expected due to preparations for the presidential early voting, so it is advised to apply in person by the 16th if possible.”