It is said that the ‘youth medicine account’ that will fill our bank account will be released in June this year.
We have compiled the most frequently asked questions about how to apply.
Please check the information below to save time.
Youth Leap Account
How to apply for Youth Leap Account
Conditions for joining the Youth Leap Account
We have summarized the conditions for joining the Youth Leap Account in a table.
joining condition
Age (enrollment age) Young people between the ages of 19 and 34 (military service period can be extended for up to 6 years)
Income standards □ Government contribution payment and tax exemption are applied for total wages of less than KRW 60 million.
□ 60~75 million won based on total salary is tax exempted only without government contribution payment
※ It is possible if you are a young man with income from work or business and have a job that is covered by the 4 major insurances.
A young person who meets the standard of 180% or less of the median income of the household income standard
Exceptions However, those who are subject to comprehensive financial income taxation at least once during the previous three years are restricted from joining.
※ If your financial income (the sum of interest income and dividend income) exceeds KRW 20 million
To sum up, young people between the ages of 19 and 34 with an income standard of less than 75 million won and less than 180% of the median income are eligible for membership. If you are curious about the median income, check out the information below.
Youth Leap Account
Determining Median Income
Application period and application method
1. Application Period
You can apply for the Youth Leap Account from June 23, and apply until December 31. We recruit applicants for 2 weeks every month, and when the application is received, we will notify you of the results after 2 weeks of review.
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2. How to apply
As of the present (23.4.8), the agency handling the Youth Leap Account has not yet been accurately determined, and it is said that it plans to recruit institutions that wish to handle it among ‘financial companies’ that meet certain requirements. Related details are scheduled to be announced by the Small Finance Promotion Agency, so it would be nice to go in and check them once in a while.
Youth Leap Account
Can college students sign up?
1. Proof of Income
The Youth Leap Account is aimed at people with income, so even those who are working part-time or college students with personal income can apply. However, you need to prove that you are paying employment insurance to be able to sign up. Income declaration is filed once a year in May, so if your income for the previous year has not been confirmed, you can apply for it after it has been confirmed.
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▣ How to check the subject of income report
Go to the National Tax Service Home Tax ▷ Proof of civil complaint ▷ Proof of income amount ▷ Log in to the certificate ▷ Enter personal information and check for earned income earners ▷ Issuance after selecting the tax period
Youth Leap Account
2. Age and subscription conditions
Age and subscription (income) conditions are the same as those mentioned above (ages 19-34 / income less than 75 million won, median income less than 180%). You can sign up through an institution (bank, securities company) that has an agreement with the government or through the institution’s app. I will post when the relevant contracting organization comes out later.
support content
1. Contribution payment structure by individual income
Personal Income (Based on Gross Salary) Contribution Payment Limit (Monthly) Contribution Matching Ratio Contribution Limit (Monthly)
24 million won ~ 400 thousand won 6.0% 24 million won
Less than 36 million won ~ 500 thousand won 4.6% 2.3 million won
48,000,000 won ~ 600,000 3.7% 22,000 won
Less than 60 million won ~ 700 thousand won 3.0% 2.1 million won
Less than KRW 75 million – – –
Calculation method of subsidy
case 1. [Payment limit of contributions >> Amount of contributions by the individual] = Amount of contributions by the individual X Contribution matching ratio
case 2. [Contribution payment limit << self-paid amount] = contribution payment limit X contribution matching ratio
For example, if A, whose income is less than 24 million won, pays 300,000 won per month, his contribution (300,000 won) is less than the payment limit of 400,000 won. = You will receive 18,000 won per month, 216,000 won for 1 year, and 1.08 million won for 5 years of government support.
For the interest rate of financial institutions, ‘fixed rate applied for 3 years (or more) after subscription’ + 2-year floating rate is applied.
The level of interest rates by handling institution will be announced on the homepage of the Financial Association.
It is said that low-income young people (eg, less than 24 million won) are given preferential interest rates.
2. Amount received at maturity
▷ If you pay a maximum of 700,000 won per month, the amount to be received at maturity
Personal Income Monthly Payment
(Maximum) Gross Principal Interest Rate Gross Interest Government Contribution Expected Maturity
24 million won or less 700,000 won 42 million won 4% 4,270,000 1,440,000 47,710,000
5% 5,337,550 1,440,000 48,777,500
6% 6,405,000 1,440,000 49,845,000
36 million won or less 42 million won 4% 4,270,000 1,380,000 47,650,000
5% 5,337,500 1,380,000 48,717,500
6% 6,405,000 1,380,000 49,785,000
48 million won or less 42 million won 4% 4,270,000 1,320,000 47,590,000
5% 5,337,500 1,320,000 48,657,000
6% 6,405,000 1,320,000 49,725,000
60 million won or less 42 million won 4% 4,270,000 1,260,000 47,535,000
5% 5,337,500 1,260,000 48,597,500
6% 6,405,000 1,260,000 49,665,000
If the maximum payment is 700,000 won for a total of 5 years, the maturity amount is expected to be approximately 47.7 million won to 49.66 million won, depending on the interest rate.
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▷ When monthly payments are made under the government contribution limit, the amount received at maturity
Personal Income Monthly Payment
(government contribution
maximum payment) total principal interest rate total interest government contribution expected maturity
24 million won or less 400,000 won 24 million won 4% 2,440,000 1,440,000 27,880,000
5% 3,050,000 1,440,000 28,490,000
6% 3,660,000 1,440,000 29,100,000
36 million won or less 500,000 won 30 million won 4% 3,050,000 1,380,000 34,430,000
5% 3,812,500 1,380,000 35,192,500
6% 4,575,000 1,380,000 35,955,000
48 million won or less 600,000 won 36 million won 4% 3,660,000 1,320,000 40,980,000
5% 4,575,000 1,320,000 41,895,000
6% 5,490,000 1,320,000 42,810,000
60 million won or less 700,000 won 42 million won 4% 4,270,000 1,260,000 47,530,000
5% 5,337,500 1,260,000 48,597,500
6% 6,405,000 1,260,000 49,665,000
In the case of monthly payments under the government contribution payment limit, the expected maturity amount is expected to be approximately KRW 27.88 million to KRW 49.66 million. Most of the young people between the ages of 19 and 34 are college students or newcomers to society, so it doesn’t seem easy to pay 700,000 won each. There are many parts where it is difficult to pay 700,000 won each due to marriage or house problems, so it seems okay to pay within the contribution limit.
Frequently Asked Questions
1. What is the expected timing of the Youth Leap Account launch?
▷ It is scheduled to be released in June 2023, and the specific timing will be decided and announced through consultation after the handling agency is confirmed.
2. How to link Youth Leap Account with similar products?
▷ Even young people who have subscribed to existing support products can sign up simultaneously or sequentially with similar products so that they can receive maximum asset formation support.
1) Connect with welfare support products to provide more support for young people with low income and lack of assets
☞ Allows simultaneous subscription to Youth Tomorrow Savings Account and local government support products for welfare purposes
2) Strengthen support for incumbents in SMEs through linkage with employment support products
☞ Youth (incumbents) are allowed to join tomorrow’s fill deduction and local government support products for the purpose of employment support at the same time
3) Youth Hope Savings Savings, which have similar business purposes to the Youth Leap Account, are sequentially added to the Youth Leap Account
* Including early termination (Saving incentives are paid only when the conditions for special early termination of the youth desired savings account are met, and tax exemption is applied)
3. What is the level of preferential interest rate for low-income people?
▷ Details, such as specific preferential interest rates, will be finalized through consultations once the handling agency is recruited.
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4. Can I sign up for Youth Leap Account at all financial companies?
▷ The handling of Youth Leap Accounts is allowed under the relevant laws, and we plan to recruit institutions that wish to handle it among financial companies that meet certain requirements.
5. What are the screening procedures and preparation documents after applying for a Youth Leap Account?
▷ After applying for membership, the final decision is made after examining the individual income and household income of the youth.
▷ We are preparing to enable non-face-to-face sign-up, such as the handling agency app, and are promoting non-face-to-face sign-up through identity verification and income verification without separate documents.
6. If it is difficult to verify the previous year’s income, is it possible to sign up with the previous year’s income?
▷ Income from the previous taxable period can be registered by using the income from the previous taxable period instead of the previous taxable period until it is reconciled.
※ Income for the previous taxable period is confirmed around July-August 2023
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7. Will I continue to receive income-based assistance upon enrollment, or will I be subject to periodic income review?
▷ Considering that it is a mid- to long-term product with a maturity of 5 years, a maintenance review is conducted through the currentization of personal income every one year from the date of subscription.
※ Contribution payments may be suspended for reasons unrelated to the subscriber’s personal income, such as changes in household members (divorce, independence, death, etc.), so household income is excluded from maintenance review.
– Depending on the result of the review, whether or not the government contribution will be paid and the amount will be adjusted.
▷ If your personal income exceeds KRW 60 million (based on gross salary) as a result of the maintenance review, government contributions will be suspended until the next maintenance review.
※ In the next maintenance examination