The second recruitment round for the Youth Future Savings (Cheongnyeon Mirae Jeokgeum) program is set to begin. In this round, applicants must directly select their own category, and a new pathway has opened for existing Youth Leap Account (Cheongnyeon Do-yak Gyejwa) holders to move into the Youth Future Savings program.

The application period runs from October 7 to 16. Account opening will be available from November 16, after screening is completed.

Product Structure and Interest Rates

The Youth Future Savings program is a three-year maturity, free-installment product designed to support asset formation among young people. Depositors are not required to deposit 500,000 won each month; instead, they may contribute freely up to a maximum of 500,000 won per month. Contributions are matched with government contributions of 6% or 12% depending on the subscription type, and interest income is tax-exempt.

The interest rate is fixed for three years: a base rate of 5% plus preferential rates of up to 2–3% depending on the bank. Actual conditions and preferential rates should be confirmed with each participating financial institution.

The figure of "up to 19.4% per year" should not be confused with a simple deposit rate. It is a measure of the combined real subscription effect—including the interest rate, government contributions, and tax exemption on interest income—compared to an ordinary simple-interest installment savings product. By financial authorities' standards, the standard type is expected to yield an effect similar to a simple-interest savings account of up to 13.2–14.4% per year, while the preferential type is comparable to up to 18.2–19.4% per year.

Eligibility Conditions

The basic age requirement is 19 to 34 years old. For this round, those born between November 17, 1991, and November 27, 2007, are eligible. Those who have completed military service may exclude up to six years of service from the age calculation.

Income conditions must also be met. Applicants must be either an income earner with total wages of 75 million won or less or a small business owner with annual revenue of 300 million won or less, and household income must not exceed 200% of the median income. Income from 2025 will be used as the standard for this screening. Employees of small and medium enterprises, newly employed workers, and small business owners meeting certain conditions may qualify for the preferential type.

How to Select the Application Category

One change in this second round is that applicants select their category at the time of application.

• General income earners: selected by young people undergoing standard income screening
• SME employees: selected at the application stage by workers at small and medium enterprises; if employment cannot be verified electronically, an SME confirmation certificate may be required
• Small business owners: a small business owner confirmation certificate must be issued before applying; if there are two or more business sites, certificates for all sites are required

For SME employees, post-subscription conditions also matter. If a subscriber who joined the preferential type fails to meet employment requirements, the account may be converted to the standard type at maturity, and some benefits such as government contributions may change. Small business owners who fail to meet their requirements may still be screened under the standard type if they satisfy the general income earner requirements, such as comprehensive income.

Application Schedule and Procedure

On the first two days, October 7 and 8, an odd-even system based on the last digit of the birth year will apply. From October 12 to 16, anyone may apply regardless of birth year. Applications are handled remotely via participating institutions' mobile apps.

Key dates are as follows:

• Applications: October 7–16
• Subscription and income screening: October 19 – November 13 (additional documentation may be requested for items difficult to verify electronically)
• Preliminary screening results notification: October 30 – November 2
• Objections: November 2–5
• Final subscription screening results notification: November 12–13
• Account opening: November 16–27

These dates are provisional. Young people notified of eligibility may open an account through the app of the institution where they applied.

Switching from the Youth Leap Account

A notable change in this round concerns the relationship with the Youth Leap Account. Existing Youth Leap Account holders are being given the opportunity to switch to the Youth Future Savings program.

However, this is not done by first canceling the existing account. The procedure is as follows:

1. Apply for and be screened for the Youth Future Savings program 2. After receiving notification of eligibility, open a Youth Future Savings account 3. Apply for a "special mid-term cancellation of the Youth Leap Account for the purpose of Youth Future Savings subscription"

If the special mid-term cancellation of the Youth Leap Account is not completed within the designated period after opening the Youth Future Savings account, contributions cannot be made to the new account, so those considering the switch must carefully review the procedure and order of steps.

Support for Military Service Members

Young people in basic military training may apply and open accounts via smartphone at the training center. However, installing financial apps or completing identity verification may be difficult during training, so it may help to install the intended financial institution's app and complete membership registration, identity verification, and opening a transaction account before enlistment or before applying.

Service members who have completed basic training may also qualify for the standard type if they had taxable income or certain tax-exempt income in the previous year and meet the relevant income requirements.

Differences by Institution

KakaoBank will accept applications for up to 100,000 accounts in this second round. During the initial odd-even application period, it will accept up to 50,000 accounts per day, with additional applications accepted thereafter within the remaining limit. Other institutions do not plan to set separate account number limits.

Three Things to Check

Young people preparing for this second round should first verify the following:

1. Whether their age and income meet the subscription criteria 2. Which category to apply under: general income earner, SME employee, or small business owner 3. Whether to use the switching procedure if they hold an existing Youth Leap Account

Although the application period is October 7–16, actual account opening will take place November 16–27 after screening. It should also be noted that the "up to 19.4% per year" figure is not a simple bank deposit rate but the real subscription effect converted to include government contributions and tax exemptions.

[This article was written for informational purposes based on materials on the second Youth Future Savings recruitment released by the Financial Services Commission and the Korea Inclusive Finance Agency. Actual eligibility, applicable interest rates, preferential conditions, and government contributions may vary depending on individual income, household income, employment and business owner status, and conditions of each financial institution. Before applying, readers should confirm the latest announcements from the Financial Services Commission, the Korea Inclusive Finance Agency, and participating financial institutions. The final decision and responsibility for subscribing to a financial product rests with the subscriber, and AI assistance was used in writing and editing this article.]