Korea Inclusive Finance Agency s reported rejection of men completing mandatory military service from opening government-subsidized savings accounts, or Youth Leap savings accounts, for young adults has sparked controversy here.
One out of four subscribers of the installment savings product introduced during the previous Moon Jae-in administration has closed their account, according to data from the Financial Supervisory Service (FSS).
Banks are at a loss over the government-supported Youth Leap savings product, as they face criticism for pushing young people to spend on credit by offering preferential interest rates to those who spend a specified amount each month.
A new installment savings product assisted by the government will be made available this month for young people. But it is uncertain whether they can benefit from the product as it has demanding terms and conditions concerning the monthly savings amount and subscription period, among other things.