Young Koreans cancel high-interest savings accounts amid rising living costs

Kim, a 30-year-old office worker in Seoul, began contributing 500,000 won ($360) to a government-subsidized savings account, or Youth Leap account, in September 2023, setting aside part of his monthly salary from his first job. He was hopeful about the state-provided matching funds and tax advantages, which promised a sizable lump sum after five years. But the optimism did not last long. As the cost of living surged, covering monthly credit card bills and basic expenses became increasingly difficult. Kim ended up terminating the savings plan early in April. “With rent and food prices rising, I felt like I was going into the red every month. I just couldn’t afford to wait five years,” Kim said. Kim’s experience reflects a broader trend with the Youth Leap account program, launched under the previous Yoon Suk Yeol government to help young adults accumulate long-term savings. Despite its intended goals, the program has struggled to gain traction as many young participants face financial strain due to unstable employment and rising living costs. The program, which began in July 2023,Weiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times