South Korea to Launch Child Independence Fund Worth Up to 70 Million Won by Adulthood

South Korea plans to give children a government-backed investment account from birth, with the goal of helping them enter adult life with a financial cushion.

The Our Child Independence Fund is scheduled to launch in the second half of next year. The government would contribute up to 1.2 million won a year until a child turns 18, while parents could make additional deposits. With government and parental contributions combined, the account could accumulate about 70 million won over 19 years, assuming a 6% annual return.

Children born after September this year, estimated at about 320,000, would be eligible to join. Government support would vary by household income, either through fixed payments or contributions linked to the parents’ deposits.

The Financial Services Commission has proposed a 9.2417 trillion won budget for next year, 98.7% higher than this year’s allocation. It also plans to expand the budget for the Youth Future Savings program from 700 billion won to 1.7 trillion won.

The government plans to remove income eligibility requirements for the program’s standard plan, widening access beyond the current thresholds of annual pay below 75 million won and household income below 200% of the median. It would raise the government contribution rate for the preferential plan from 12% to 15%. Young people joining a new preferential track for employees of regional small and medium-sized companies would receive support equal to 25% of their own deposits.