Government plans 1.2 million won annual child deposits from September next year

Starting in September next year, the government plans to establish the Our Child Self-Reliance Fund, depositing 1.2 million Korean won annually for children born into households earning less than 50% of median income until they turn 18. The government will make the deposits even if parents contribute nothing, allowing at least 21.6 million Korean won to accumulate when enrollment begins at birth. Families earning between 50% and 150% of median income may also participate if they meet contribution requirements tied to income. The Ministry of Planning and Budget said at the Youth Budget Unboxsing 2027 event on the 28th that youth-related investment would rise from 28.2 trillion Korean won this year to 43.3 trillion Korean won next year, a 53.3% increase. It said individuals could receive benefits worth up to 140.57 million Korean won by age 18 and 195.82 million Korean won by age 34. The government also plans to remove the 60 million Korean won income cap for the general-type Youth Future Savings Account, which offers effective annual interest of up to 19.4%, and introduce interest-free Youth Opportunity Fund loans of up to 20 million Korean won for qualifying job seekers.

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