Financial Services Commission to Inject 2.1 Trillion Won Into Youth Support Next Year... Launching Youth Financial Policy Advisory Panel

Youth Support Budget to Be Increased from 870 Billion to 2.1 Trillion Won
'Preview of the 2027 Financial Services Commission’s Youth Programs' Event Held
Youth Financial Policy Advisory Panel to Be Established to Gather Feedback

The Financial Services Commission will more than double its budget for youth support, increasing it from approximately 870 billion won this year to about 2.1 trillion won next year. Six initiatives across the three key fields of asset-building, employment, and housing will be implemented, and a youth financial policy advisory panel will be established to ensure young people’s voices are reflected in policymaking.

Yonhap News

The Financial Services Commission announced on September 21 that it hosted the 'Preview of the 2027 Financial Services Commission’s Youth Programs' at the Hanyang Institute of Technology at Hanyang University’s Seoul campus. The event was attended by Financial Services Commission Chair Lee Eogwon, representatives from the Youth Wallet Training Center, Korea Inclusive Finance Agency, and Korea Housing Finance Corporation, among others.

In his opening remarks, Chair Lee stated, "The youth support budget will be more than doubled from about 870 billion won in 2026 to roughly 2.1 trillion won in 2027. We will significantly strengthen support for youth, focusing on six new or restructured initiatives within the three main fields of asset-building, employment, and housing."

Chair Lee further announced, "We will establish a provisional ‘Youth Financial Policy Advisory Panel’ that includes youth-led groups, young people, program operators, and experts, to more proactively gather young people’s perspectives throughout all stages of policy planning, implementation, and evaluation."

At the event, the Financial Services Commission introduced the main content of six financial programs for youth that will be newly created or reorganized next year. The event also included a policy talk, where young participants could ask questions and propose suggestions for each initiative.

To support asset-building at the point of entering young adulthood, the ‘Our Child Independence Fund’ will help young people prepare for social entry. This fund allows parents and the government to make joint deposits into a fund under the child’s name, to be invested and managed over the long term. From birth to age 18, the government will provide a fixed annual grant of 1.2 million won, or a matching grant of up to 1 million won per year. Assuming an annual return of 6% and investing 2 million won annually for 19 years, the Financial Services Commission anticipates that around 70 million won can be accumulated.

In the preparation stage for employment or entrepreneurship, the ‘Youth Opportunity Fund’ will provide young people with financial assistance needed for job-seeking and starting a business. For those pursuing fintech entrepreneurship or employment in the financial sector, the ‘Financial Innovation Job and Startup Program’ will support business development and specialist training.

The 'Youth Future Savings' program, intended to help build initial assets before and after entering the workforce, will also be expanded and improved. Eligibility will be extended to all young people, and the preferential government contribution will be raised from 12% to 15%. For young people working in small or medium-sized enterprises in provincial areas, the government contribution will rise to a maximum of 25%. As a result, general participants will be able to accumulate over 21 million won, while young people employed at provincial SMEs could amass more than 25 million won, according to the Financial Services Commission. In line with the expanded eligibility, the commission is also working in coordination with relevant ministries and the National Assembly to extend tax-free interest benefits to all participants.

Support for young people striving for independent living will likewise be expanded. Those wishing to purchase an apartment can continue to use the standard Bogeumjari Loan, while those seeking to buy non-apartment units such as officetels will be supported through the ‘Youth Future Bogeumjari Loan’.

For young people renting on a monthly or yearly basis, the current jeonse loan program for non-homeowners will be supplemented with the introduction of a 'Youth Jeonse-Wolse Combined Guarantee,' enabling low-interest financing for both jeonse and wolse contracts.

The Financial Services Commission stated it would review the comments collected from youth at the event and incorporate them into the detailed operation plans of each program. The commission also announced plans to actively support passage of the 2027 youth support budget through the National Assembly.

This content was produced with the assistance of AI translation services.