According to Kim Guk-bae from E-Daily, the number of participants in the Youth Leap Account program, launched by the government to assist young adults in building their assets, has exceeded 1.5 million. As of the previous day, 1.52 million young people have opened Youth Leap Accounts, with 64,000 new members joining this month alone. This figure is about three times the number of new members who joined last month (21,000 in September). This means that one out of every four eligible young individuals (approximately 6 million) has enrolled in the program.
As of the end of last month, the retention rate for the account was 88%, with 1.28 million of the 1.46 million who opened accounts continuing their contributions. Compared to the average retention rate of 45% for similar savings products offered by commercial banks over the same period, this is significantly higher. While the average early withdrawal rate for commercial bank savings products is around 55%, the early withdrawal rate for the Youth Leap Account is only 12%.
The Financial Services Commission (FSC) stated that because young people are likely to face urgent financial needs for marriage, childbirth, education, and housing, they are offering savings-backed loans to help maintain account subscriptions without cancellation. These loans can be utilized not only as lump-sum loans but also in the form of credit limits (overdraft accounts).
Additionally, for young people who maintain their subscriptions for more than two years, the FSC plans to implement a partial withdrawal service that allows them to withdraw up to 40% of the total amount contributed by the end of the year. Subscribers who maintain their accounts for over two years and deposit more than 8 million won will also receive an incentive of at least a 5-10 point increase in their personal credit evaluation score. The government contribution to the Youth Leap Account will also be expanded from a maximum of 24,000 won per month to a potential maximum of 33,000 won per month in the future.