Youth savings program attracts 2 million applicants in under two weeks

South Korea's 'Youth Future Savings' program has seen an overwhelming response, with over 2 million young people applying in less than two weeks since its launch. This surge in applications follows President Lee Jae-myung's directive to ensure all eligible youth receive support, even if it requires additional budget allocation.

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Policy as a whole, it is important to make careful and steady efforts to give more opportunities to young people.

The savings program targets individuals aged 19 to 34 with an annual income below 60 million won. Those earning less than 36 million won qualify for preferential treatment, receiving a government contribution of 12% on their deposits. For these preferential subscribers, a monthly deposit of up to 500,000 won over three years could yield an effective annual interest rate of up to 19.4%, potentially reaching 22.55 million won upon maturity.

Beyond financial incentives, the program offers additional benefits. Participants who maintain their accounts for at least two years and deposit a cumulative 8 million won will receive 5-10 bonus credit score points. Furthermore, engaging in a financial counseling program grants an additional 0.2% preferential interest rate.

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If 10 million people apply, someone has to be excluded. If the conditions are the same, criteria such as first-come, first-served or age order must be set in advance.

Applications are open until July 3rd, with account openings scheduled from July 27th to August 7th, following eligibility checks. President Lee emphasized the importance of providing ample opportunities for young people and ensuring thorough promotion and management of the savings program. He stressed that if the number of applicants exceeded expectations, measures should be in place to handle them fairly, such as establishing clear criteria like first-come, first-served or age-based selection.

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If the budget is insufficient, we can find ways to utilize the existing budget.

In response to the president's concerns about potential exclusions, the Minister of Economy and Planning confirmed plans to support approximately 3.2 million individuals with the current budget of 745 billion won. He assured that if the budget proved insufficient, alternative funding methods would be explored. President Lee concluded by directing that all applicants who applied within the initial two-week period and meet the eligibility criteria should be accommodated, even if it necessitates budget adjustments.

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If there are more applicants, how unfair would it be for those who are cut off? Let's organize it so that everyone who applies within two weeks is processed by allocating the budget.