The Seoul Metropolitan Government (SMG) doubled the number of its “Double Hope Youth Savings Account” program beneficiaries to 7,000 and is starting to activate their accounts for them to start depositing their savings. This is the first program of its kind in the country started to help young working people with low income.
The foundation of this program is “Seoul Hope Plus Savings Account,” which the SMG rolled out in 2009 to help young working people experiencing difficulties in building assets due to low income. In 2020, the SMG selected 3,000 beneficiaries of the “Double Hope Youth Savings Account.” In 2021, the SMG expanded the beneficiary count to 7,000 beneficiaries in the wake of the economic downturn caused by the pandemic.
The selected beneficiaries must now submit the required paperwork, set up their savings accounts via online (Mon, Nov. 15 – Wed, Nov. 24), and start depositing within the prescribed time period (Thu, Nov. 25 – Tue, Nov. 30). The SMG will assess their savings amount and return double the amount accordingly starting December.
The SMG’s “Double Hope Youth Savings Account” is an asset-building support program for members to save up for living, education, marriage and startup expenses; when a young working person saves KRW 100,000–150,000 per month steadily over two to three years, double the total savings amount will be returned through additional accumulation from the budget of the SMG. For example, if a young working person saves KRW 150,000 per month steadily over three years, the person will receive KRW 10.8 million (KRW 5.4 million total savings + KRW 5.4 million funds from the SMG) including interest.
Moreover, the SMG is making efforts to provide the beneficiaries with savings management, financial education, counseling and information as well as personalized services to help them gain financial independence in cooperation with youth organizations such as Seoul Youth Guarantee Center. The SMG is planning to strengthen its online support system to improve user convenience and accessibility by establishing an online savings management system, and so on.