Applications for the second intake of Youth Future Savings will begin on Oct. 7. This round gives existing Youth Leap account holders an additional chance to switch to Youth Future Savings. If next year’s budget bill passes the National Assembly, the government plans to retroactively apply the higher preferential government contribution to existing subscribers as well.

The Financial Services Commission and the Korea Inclusive Finance Agency said on Tuesday they will accept applications for the second intake of Youth Future Savings from Oct. 7 to 16. Eligibility screening will run from Oct. 19 to Nov. 13, and applicants who pass can open accounts from Nov. 16 to 27.

On the first two days of applications, Oct. 7 and 8, an odd-even system will apply based on the last digit of applicants’ birth year. From Oct. 12 to 16, applications will be accepted regardless of birth year.

Youth Future Savings is a product in which participants can freely deposit between 1,000 won and up to 500,000 won a month for three years. The government supports a set percentage of deposits as a contribution and provides tax-exempt benefits on interest income.

Eligible applicants are youths aged 19 to 34. In this intake, those born from Nov. 17, 1991 to Nov. 27, 2007 can apply. For those who performed military service, up to six years of service time will be excluded from the age calculation.

The income criteria are the same as in the first intake. Applicants can join if they have annual total pay of 75 million won or less, or are small business owners with annual sales of 300 million won or less, and have household income at or below 200 percent of the median. The general type receives a 6 percent government contribution on deposits, while the preferential type, including new hires at small and medium-sized enterprises, current SME employees who meet certain requirements, and small business owners, receives 12 percent.

Switching for Youth Leap account holders will also be allowed again. The two products cannot be held at the same time, but those who make a special early termination of a Youth Leap account for the purpose of joining Youth Future Savings can keep the government contribution on previous deposits and the tax-exempt benefit on interest income.

Subscribers who want to switch must first apply for Youth Future Savings and undergo screening, then open a Youth Future Savings account after receiving notice that they can join. They then proceed by making a special early termination of the existing Youth Leap account.

The eligibility screening process will also be reinforced. Applicants will select their SME employment status directly, and verification will be strengthened by checking it against the Korea Inclusive Finance Agency’s screening results using Korea Enterprise Data (KoDATA) and other sources. The government plans to provide preliminary screening results in advance as well, so applicants can explain any discrepancies between their application type and the screening result before final confirmation.

The government has submitted to the National Assembly a 2027 budget bill that expands eligibility for Youth Future Savings to all youths and raises the preferential government contribution rate from 12 percent to 15 percent. The bill also includes raising the contribution rate to 25 percent for workers at regional SMEs. If the budget bill is finalized after National Assembly review, the government plans to retroactively pay the increased preferential contribution to existing subscribers. The expanded eligibility will apply starting with the 2027 intake.

The third intake will be conducted after the budget bill is finalized and relevant laws and regulations and the screening system are updated. The Financial Services Commission plans to provide additional guidance on detailed application methods and the Youth Leap account switching process before the second intake begins.