Youth Future Savings second-round applications close on Oct. 16; switching from Youth Leap Account possible
The Financial Services Commission announced on Oct. 15 that second-round applications for the Youth Future Savings program will close at 6:30 p.m. on Oct. 16, urging eligible young people to apply before the deadline. Applications opened on Oct. 7.
The program targets individuals born between Nov. 17, 1991 and Nov. 27, 2007, covering those aged 19 to 34 as of the signup date. Military service of up to six years is excluded from age calculations for those who have completed their service.
Applicants can submit their applications through mobile apps of 14 participating financial institutions, including NH Nonghyup, Shinhan, Woori, Hana, IBK Industrial Bank of Korea, KB Kookmin, Sh Suhyup, iM, Busan, Gwangju, Jeonbuk, Gyeongnam, KakaoBank and Korea Post.
Screening and account opening timeline
Income screening and eligibility verification will run from Oct. 19 to Nov. 13. The commission will provide preliminary screening results between Oct. 30 and Nov. 2, allowing applicants to file objections from Nov. 2 to 5.
Approved applicants must open their accounts on weekdays between Nov. 16 and 27 through a participating institution's mobile app. Account opening under this application round will not be possible after Nov. 27.
Current Youth Leap Account holders who meet eligibility requirements can switch to the new program. They must apply during the current period, pass screening, open a Youth Future Savings account, and then request special early termination of their existing Youth Leap Account.
During the first enrollment round in June-July 2025, 2.34 million people applied for the program, with 1.55 million clearing income screening and 1.39 million ultimately opening accounts. The program drew over 1 million applications within the first five business days of its launch in June 2025, demonstrating strong demand among young South Koreans. About 440,000 Youth Leap Account holders applied to switch during the first window, with 262,000 completing the transition.
Program design and financial benefits
The Youth Future Savings program was developed as an improved successor to the Youth Leap Account, which launched in July 2023 but fell short of the government's initial goal of 3.06 million participants, accumulating only 2.2 million sign-ups by July 2024. The predecessor program faced criticism for high early termination rates linked to its five-year maturity period. About 30% of subscribers to the Youth Leap Account and the earlier Youth Hope Savings Account failed to reach maturity, with job loss or income drops accounting for 39% of early terminations and emergency cash needs representing 33.3%.
In response, the new program features a shortened three-year maturity term. Participants in the preferential tier who deposit the maximum 500,000 won monthly can receive approximately 22 million won at maturity, comprising 18 million won in principal, 2.16 million won in government contributions, and about 2.3 million won in interest.
When combining base interest rates, government contributions, and tax exemption benefits, the effective annual return ranges from 13.2% to 14.4% for the standard tier and 18.2% to 19.4% for the preferential tier, making the program significantly more attractive than conventional savings products.
Expanded benefits for 2027
The government is pursuing plans to expand eligibility and increase support benefits starting next year. The 2027 draft budget includes raising the preferential government contribution payout rate to 15% from the current 12%, with a 25% rate applied to employees at small and medium-sized companies outside the Seoul metropolitan area.
If the draft budget and related measures receive National Assembly approval, the government will apply the revised benefits retroactively to existing subscribers. Enhanced contributions will be paid to current preferential subscribers, and some subscribers who currently receive only tax exemption on interest income will retroactively receive standard contributions.
Financial Services Commission Chairman Lee Eok-won announced in September 2026 that the youth support budget increased from 870 billion won in 2026 to approximately 2.1 trillion won in 2027, reflecting the government's commitment to youth financial policy. The commission also expanded its personalized financial counseling infrastructure for youth from 21 branches to 133 in July 2025, with plans to reach over 200 branches by year-end to provide more than 100,000 counseling sessions annually.
