‘Youth contractual account’ reduced from 10 years to 5 years… ‘Government contribution’ is also expected to decrease significantly

financial committee. News 1

Yoon Seok-yeol was interpreted differently from what was originally known as a ‘100 million passbook’ as the contents of the ‘Youth Weak Account’ in the budget for next year announced by the government on the 30th included the issue of 5 years rather than a 10-year maturity and a government contribution that is expected to decrease significantly. It seems difficult to avoid criticism that the president has retreated from his previous promises.

The ‘General Accounting Appropriation Budget for Fiscal Year 2023’ announced by the Financial Services Commission on the same day reveals that young people aged 19-34 who meet the criteria for personal income of 60 million won or less and 180% of the median household income or less are eligible for contribution payments. Those who fulfill military service obligations are subtracted from the calculation of their age by the relevant period (up to 6 years), and the government expects about 3.06 million people, or 30% of the population aged 19-34, to join.

In particular, the account maturity period was reduced to 5 years instead of the 10 years suggested in the pledge project stage. It was judged that it was realistically difficult to create the ‘100 million won bankbook’ that was promised during the presidential campaign. The contribution budget organized by the government is a total of 344 billion won, assuming that the product will be operated in the second half of the year.

The monthly payment is 400,000 to 700,000 won, and the contribution from the government is also calculated as up to 6% of the paid amount.

In February, when President Yoon was a presidential candidate, President Yoon announced his pledge of ‘Youth Finance’, and the government added 100,000 to 400,000 won per month when a 19-34-year-old with working or business income saves a certain amount within the limit of 700,000 won per month. Compared to the announcement of a plan to introduce a youth leap forward account that creates 100 million won with a 10-year maturity, the government contribution is up to 42,000 won per month (6% calculation), so it can be interpreted as a significant reduction from the promise. At that time, when the promise was made, the portal site attracted so much interest that an online community related to the Youth Leap Account was opened.

In response to the question, “It seems impossible to give it the nickname of 100 million bankbook, and there is a possibility of being pointed out that it has retreated from the previous promise,” FSC Secretary General Lee Se-hoon said, “The purpose of the promise is to make the most of the young people who have difficulty forming assets alone. He said, “For implementation, we have consulted with relevant ministries in various areas, including ways to secure financial resources.”

Director Lee said, “However, the current fiscal stance requires tight management of total expenditure.” He added, “We will comprehensively review specific action plans to achieve the purpose of the pledge, such as prioritizing the project, and find the best action plan within the available financial resources. “I was thinking about what it was,” he added. He added, “I initially proposed a 10-year product, but the market does not see much demand for a 10-year product, and I thought it would be realistic to go to a 5-year maturity rather than 10 years,” he said. After that, we will review whether the product can be extended after that, taking into account the economic situation,” he explained.

By Kim Dong-hwan, staff reporter kimcharr@segye.com

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