Gov’t unveils youth housing subscription savings account

2024.02.21 12:14:01 | 2024.02.21 13:18:40

[Photo by Kim Ho-young]이미지 확대

[Photo by Kim Ho-young]

The South Korean government will launch a ‘Youth Housing Dream Subscription Savings Account’ on Wednesday, following up on its 2023 policy to support housing purchases and asset formation for young individuals without homes.

The country’s Ministry of Land, Infrastructure and Transport announced on Tuesday that any young adult aged 19 to 34 with an annual income of 50 million won ($37,487) or lower can sign up for the account and pay up to 1 million won per month. The annual income of 50 million won refers to the total of annual labor income, business income, and other income at the time of enrollment.

The interest rate applied is a maximum of 4.5 percent per annum, and up to 40 percent of the contribution amount is eligible for income deduction, and interest income up to 5 million won is also tax-free. The tax-free benefit is only available to those with an annual income of 36 million won or less from labor and 26 million won or less from total income.

Those selected via a lottery by using the Youth Housing Dream Subscription Savings Account can also make use of the Youth Housing Dream Loan, which offers a maximum of 80 percent of the housing subscription amount at an annual interest rate in the 2 percent range.

By Seo Jin-woo and Yoon Yeon-hae

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