Over the past six months, a total of 510,000 people have signed up for the ‘Youth Leap Account’, which was launched in June this year to help young people build assets. As of the end of November, the average monthly payment for Youth Leap Account subscribers was KRW 565,000, showing a payment rate of 80.7% compared to the monthly payment limit (KRW 700,000), and an average government contribution of KRW 21,000 per month was paid per young person enrolled.
Today, let’s find out who can sign up for the Youth Leap Account and the benefits, and check out the changes to the Youth Leap Account in 2024.
index
1. What is the Youth Leap Account?
2. Conditions for signing up for the Youth Leap Account
3. Benefits when signing up for a Youth Leap Account
4. Effects of signing up for a Youth Leap Account
5. Youth Leap Account registration and screening procedures
6. Things to keep in mind when signing up for a Youth Leap Account
7. Application for Youth Leap Account
8. Youth Leap Account that will change significantly in 2024
Apply for Youth Leap Account
What is a Youth Leap Account?
Youth Leap Account
This is a policy-type financial product to support young people’s mid- to long-term asset formation. If you freely pay within the limit of 700,000 won per month for 5 years (60 months) until maturity, a government contribution of up to 6% is paid each month and tax exemption on interest income is provided. This is a product that does.
Conditions for signing up for the Youth Leap Account
Age – 19 to 34 years old as of account opening date
·Personal income – If the total salary of the immediately preceding taxation period is KRW 75 million or less, and the amount of comprehensive income added to the comprehensive income tax base is KRW 63 million or less (if income was confirmed during a period in which the income of the immediately preceding taxation period was not confirmed, Recognized as annual income
·Household income – Those who fall under 180% of the standard median income based on the number of household members (if income is confirmed during a period in which the income of the immediately preceding taxation period is not confirmed, it is recognized as income of the previous year)
Youth Leap Account 180% of median income as of 22 years
·Comprehensive taxation of financial income – A person who is not subject to comprehensive taxation of financial income at least once in the three years immediately preceding the taxation period to which the date of subscription belongs
Benefits of signing up for a Youth Leap Account
Government contributions are provided for each income group in proportion to the amount paid, interest and tax exemptions are provided on the amount paid and government contributions, and a certain level of preferential interest rates are provided to young people from low-income families.
Youth Leap Account Government Contribution Payment Structure by Individual Income
Effects of signing up for a Youth Leap Account
Effects of signing up for a Youth Leap Account Source: Financial Services Commission
If a young person earning less than 24 million won pays 700,000 won per month for 5 years, the amount received at maturity is approximately 50 million won.
Youth Leap Account registration and screening procedures
Youth Leap Account registration and screening procedures
Things to keep in mind when signing up for a Youth Leap Account
Only one account can be registered per person across all banks, and if you are currently enrolled in the Youth Hope Savings Account, you cannot register. As of the date of subscription, the income of the immediately preceding taxation period is not confirmed, and if you subscribe based on the income of the previous taxation period, if it is confirmed that you do not meet the personal income standard based on the income of the immediately preceding taxation period after subscription, the tax exemption benefit cannot be applied, and financial benefits are not applicable. If it is confirmed that you are subject to comprehensive income taxation, payment will be suspended.
Apply for Youth Leap Account
At the beginning of every month, detailed schedules and announcements will be provided on the Korea Inclusive Finance Agency website.
Korea Inclusive Finance Agency Youth Leap Account main number – 1397 ▶ Direct connection number 3
Go to the Korea Inclusive Finance Agency
Applications can be made through each bank app. In the case of the Youth Leap Account interest rate, the basic interest rate is similar at 4.5%, but the preferential interest rate is slightly different in detail, so we recommend that you select a bank and sign up, taking into account your primary bank.
Once you have selected a bank, search for ‘Youth Leap Account’ in each banking app and sign up.
Youth Leap Account Bank
Among young people who applied for membership in December 2023, those selected for membership can open an account from January 2 to 12 of next year, and the January membership application period is from January 2 to 12 (business days only). operation), and not only young people applying for membership for the first time, but also young people who have previously applied but were unable to open an account can apply.
Afterwards, if you are confirmed to be eligible for membership through the subscription requirements verification process, you can open an account from January 18 to February 8 for a one-person household, and from January 29 to February 8 for a household of two or more people. .
Changed Youth Leap Account in 2024
1) If you are a young person who had no income in the previous tax period and has childcare leave benefits or childcare leave allowance, you can sign up for the Youth Leap Account, which also supports asset formation for young households who are temporarily focusing only on raising children.
2) All subscribers before the previous year’s income is confirmed are recognized as tax-exempt, and this applies even if they subscribed before January 24.
3) When the Youth Hope Savings Account expires, it becomes possible to make a lump sum payment to the Youth Leap Account, making it possible to build long-term assets by earning more interest with the same effect as a deposit when making a lump sum payment.