The number of depositors to South Korea’s government-backed savings product has topped two million, underscoring strong demand from younger savers, with the product offering an annual interest rate of 9%.

The Financial Services Commission and Korea Inclusive Finance Agency said on Sunday that the Youth Leap Account had 2.002 million cumulative depositors as of Thursday, just under two years since its launch in June 2023. That figure represents roughly one in three eligible young adults, or 33 percent, signaling a broad product uptake.

The Youth Leap Account allows account holders to deposit up to 700,000 won ($511) per month for five years, with the government providing additional contributions on top of the base interest. If held to maturity, savers can accumulate up to 50 million won. The government’s expanded contribution in 2025 has pushed the effective return rate to as high as 9.5 percent.

Despite the robust growth, some analysts warn that different policy priorities could threaten momentum under a new administration in Korea after the June 3rd presidential election. The Financial Services Commission announced plans to roll out an investment-type Youth Leap Account by the end of the year but has not provided a concrete timeline.

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