The Youth Leap Account began operation in earnest at 11 banks on June 15, and in the following month, July, applications were accepted from July 3 to 14, with 275,000 applicants in July and 275,000 in June through July. It is a very popular product with a total of 1.03 million monthly applications. Let’s take a look at the terms and conditions for signing up for the Youth Leap Account, which is popular for its good interest rates and benefits.
What is Youth Leap Account?
The Youth Leap Account allows young people aged 19 to 34 to freely contribute up to KRW 1,000 to KRW 700,000 per month for five years, providing contributions of up to KRW 21,000 to KRW 24,000 per month based on government-supported income and contributions, and receiving tax-exempt benefits ( 15.4%) This is a financial product that provides a lump sum of up to 50 million won after 5 years. In other words, this is a product that helps you raise a lump sum of 50 million won by adding 8 million won in interest to the principal of 42 million won. This Youth Leap Account was first launched on June 15, 2023, and many people signed up at the time of launch.
700,000 won per month
Conditions for signing up for the Youth Leap Account
The conditions for signing up for a Youth Leap Account are young people between the ages of 19 and 34 who are Korean or foreigners who meet both personal and household income. Here, people eligible for household income are based on spouse, parents, children, minor brothers and sisters listed on the resident registration certificate. If you are a man who has completed military service, the period of military service is not included in your age and you can sign up for up to 6 years. If you have completed 3 years of military service, you can sign up until age 38, not 34.
Youth Leap Account Subscription Conditions 1. Eligibility Conditions
Young people aged 19 to 34
Total salary less than 75 million won per year / Comprehensive income less than 63 million won per year
The sum of household income is 180% of median income.
Youth Leap Account subscription conditions – Young people aged 19 to 34
Applications for the Youth Leap Account are accepted at the beginning of each month, and since the deadline has expired as of December of this year, applications can be made from January 2024.
As of 2024, young people born between 1990 and 2005 are between the ages of 19 and 34.
If the period of military service is proven by a medical certificate, people under the age of 34 are also included, as calculated by subtracting the maximum 6 years of military service from their current age.
Youth Leap Account subscription conditions – Personal income conditions
Total salary for the previous taxable period was KRW 75 million or less (excluding cases where there was only non-taxable income)
Personal income less than KRW 60 million / government contribution provided + tax exemption benefits
Personal income exceeding 60 million won ~ 75 million won or less / Excluding government contribution payments, only interest income tax exemption provided
If you are subject to financial income comprehensive taxation at least once in the previous three years, that is, if the sum of interest income and dividend income exceeds 20 million won, you are restricted from joining.
If the comprehensive income amount is less than 63 million won
Youth Leap Account subscription conditions – household income conditions
The sum of the previous year’s household income, including your own, must be less than 180% of the median income.
It is said that the plan is to check personal income on a yearly basis from the date of subscription and then adjust the payment amount and size of contributions.
Conditions for signing up for the Youth Leap Account – Contribution
Youth Leap Account subscribers can receive government contributions depending on their personal income level and the amount they contribute. The lower the individual’s income, the higher the contribution rate. In addition, if the total salary is 48 million won or less, a separate payment limit is set so that you can receive all government subsidies even if you paid an amount (400,000 to 600,000 won) that falls below the monthly limit of 700,000 won.
Based on the subscription period of June 15, 2023, the immediately preceding tax period is January to December 2022. Here, since the time of income confirmation is later than the start time of subscription, income from January to December 2021 is based on it before confirmation.
Even if a subscriber with a total salary of 24 million won or less pays 700,000 won per month, the contribution amount is 24,000 won, which is 6.0% of 400,000 won.
Conditions for not joining
If you are unemployed
If you were a general taxpayer of financial income at least once in the three preceding years
Comprehensive financial income tax applies when interest and dividend income exceeds 20 million won per year.
Youth Leap Account application period
The Youth Leap Account is scheduled to operate from June 15, 2023 to December 31, 2025, and applications will be accepted for a set period of two weeks each month. Applications cannot be made on weekends, but only on weekdays. The application period is usually the beginning of each month, the account opening period is the following month, and the December application period was from December 4 to December 15. After checking the conditions from December 18 to today, December 29, the next month after confirmation is complete. You can apply for account opening from January 2nd to 12th.
Membership application period – December 4 to 15
Check conditions – December 18 – 29
Account opening – January 2nd ~ 12th
January application period
The January application period has not yet been announced, but applications are accepted at the beginning of each month, so please do not miss this great opportunity.
How to apply for Youth Leap Account
You can apply for a Youth Leap Account by visiting the bank in person or through the bank’s APP. The banks accepting youth leap account applications are SC First Bank, Industrial Bank of Korea, Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, Nonghyup Bank, Industrial Bank of Korea, Busan Bank, Daegu Bank, and Gwangju Bank. There is Gyeongnam Bank. You can select the bank you want to join, search for and apply for a Youth Leap Account without any additional documents. At this time, it is recommended to select your main bank to benefit from preferential interest rates. Additionally, if you apply for age exclusion during military service or file an objection to the income test results, you must submit additional documents separately. The results of the application will be notified within 2 to 3 weeks after the review is completed. After receiving your application, we check your age, personal income, and household income. If your qualifications are confirmed and you can open a Youth Leap Account, you will be contacted. You will also be contacted if you are not eligible.
Special reasons for termination
Subscriber’s death or overseas migration
natural disaster
Subscriber’s retirement, closure of business, treatment for more than 3 months
Suspension or cancellation of business of savings institutions
Subscriber’s acquisition of home
If you fall under special grounds for premature termination, you can benefit from the Youth Leap Account.
Youth Hope Savings and Overlapping Subscription
You can subscribe to the Youth Tomorrow Fill Deduction and the Youth Tomorrow Savings Account, but you cannot subscribe to the Youth Hope Savings Account. You can sign up when the subscription is canceled normally or when the Youth Hope Savings Account expires.
Youth Leap Account Interest Rate by Bank
The banks handling the Youth Leap Account are SC First Bank, Industrial Bank of Korea, Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, Nonghyup Bank, Industrial Bank of Korea, Busan Bank, Daegu Bank, Gwangju Bank, and Gyeongnam Bank. The maximum interest rate for each bank is 6%. no see. However, not all banks can use the 6% interest rate from the beginning, and since the interest rate is a combination of the basic interest rate and the preferential interest rate, it is recommended to select it as your primary bank to benefit from the preferential interest rate.
The above interest rate is a fixed interest rate for 3 years after subscription and a variable interest rate for the next 2 years.
You must make regular payments to the Youth Leap Account for five years, and if you cancel it mid-term, you will not receive government contributions or tax exemptions, so please make monthly payments in an amount that suits your situation.
Please refer to the site below for detailed interest rates by bank.
Learn more about preferential interest rates by bank
Youth Leap Account Q&A
Let’s take a look at the Q&A stated on the Youth Leap Account website. The information below refers to the website of the Korea Inclusive Finance Agency.
Q. I applied for membership. What should I do next?
The procedure for meeting the membership requirements for the Youth Leap Account is as follows.
Q. I heard that my personal income is not sufficient. Why is that?
If you apply after July 23, your membership will be confirmed based on your income for 22 years.
If there is no income for 22 years, total salary exceeds KRW 75 million, or comprehensive income exceeds KRW 63 million, the requirement is not met.
Those who only earned income in 2023 can apply after July 24.
Q. My brothers and sisters are missing from my household!
Q. What should I do if I don’t have a cell phone in my name?