Second-round applications for Youth Future Savings close at 6:30 p.m. on Oct. 16. Young people who want to sign up must apply by the deadline. Applicants who pass screening can open accounts from Nov. 16 to 27. The government is also pushing a plan to increase the payout rate of preferential government contributions.

The Financial Services Commission said on Oct. 15 it will end second-round applications for Youth Future Savings, which began on Oct. 7, at 6:30 p.m. on Oct. 16.

Eligible applicants are those born between Nov. 17, 1991 and Nov. 27, 2007. The programme targets young people aged 19 to 34 as of the signup date, and for those who completed military service, up to 6 years of service is excluded from age calculations.

Applications can be submitted via the mobile apps of 14 participating institutions, including NH Nonghyup, Shinhan, Woori, Hana, IBK Industrial Bank of Korea, KB Kookmin, Sh Suhyup, iM, Busan, Gwangju, Jeonbuk, Gyeongnam, KakaoBank and the Korea Post.

Income screening and eligibility checks for preferential terms run from Oct. 19 to Nov. 13. Ahead of final results, the commission plans to provide preliminary screening results between Oct. 30 and Nov. 2 and allow objections from Nov. 2 to 5.

Applicants who receive notice that they can join must open an account through a participating institution's app on weekdays from Nov. 16 to 27. After that period, account opening under this application will not be possible.

Existing Youth Leap Account holders can also switch if they meet the eligibility requirements for Youth Future Savings. They must apply during this application period, pass screening, open a Youth Future Savings account first and then apply for special early termination of their existing Youth Leap Account.

The government is also pursuing a plan to expand eligibility and support benefits for Youth Future Savings next year. The draft budget for next year includes raising the preferential government contribution payout rate to 15 percent from 12 percent and applying 25 percent to employees at small and medium-sized companies outside the Seoul metropolitan area.

If the draft budget and related measures are finalised after National Assembly review, the government plans to apply the revised benefits retroactively to existing subscribers. It plans to pay the increased contributions to existing preferential subscribers and retroactively provide standard contributions to some subscribers who currently receive only the tax exemption on interest income.