1. urgent assessment and adoption: a golden opportunity to build wealth
the last round of applications for the 2024 Hope Savings Account 2, a key asset-building program implemented by the government to support the independence of low-income people with the ability to work, has unfortunately closed early. The program was originally scheduled to accept applications from October 1 to October 24, but due to the intense interest and high demand for the program, the budget was exhausted as of October 20 and applications were closed early.
this demonstrates how powerful and essential Hope Savings Accounts2 is as a low-income asset-building program. while those who missed out on the current round of applications will be disappointed, there is a compelling reason to start preparing now for the next round. that's because the size of the government subsidy will be significantly expanded starting in 2025.
the government is planning to dramatically increase the annual amount of the Earned Income Supplement (government-subsidized savings) for new members starting in 2025. currently, it is fixed at 100,000 won per month, but from 2025, it will be 100, 000won per month in the first year, 200,000 won per month in the second year, and 300,000 won per month in the third year. this is a revolutionary change, as by the end of the three-year period, the government subsidy will be nearly double what it is today, up to more than KRW 10.8 million. strategic preparation to seize the next opportunity is needed now.
2. what Hope Savings Account 2 is and does: Personalized support to empower self-sufficiency
the Hope Savings Account 2 is an asset-building program with a clear objective: to help working low-income households become self-reliant. Rather than simply providing cash assistance, the program provides households who continue to work with a matching government contribution to their savings.
this project is one of several asset-building support programs within the Basic Livelihood Security System, and is clearly divided into Hope Savings Account I, Hope Savings Account II, and Youth Tomorrow Savings Account, depending on the target audience. while Hope Savings Account I mainly targets households receiving livelihood and medical benefits, Hope Savings Account II focuses on working-age households receiving housing and education benefits and other second-tier savings support.
the operating philosophy of the account goes beyond mere financial support to build real self-sufficiency by requiring members to maintain work activities and complete self-reliance skills training over a three-year period. this obligation structure encourages beneficiaries to continue working and earning a stable living after they become self-sufficient.
3. a breakdown of who can apply and eligibility criteria
to apply for a Hope Savings Account2, applicants must meettwo key requirements: an income threshold and a work threshold.
3.1. Mandatory income threshold: means 50% of the reference median income
at the time of application, the entire household must have a disregarded income of 50% or less of the reference median income. This includes recipient households receiving housing or education benefits, as well as other secondary tiers. the disregarded income is based on a comprehensive assessment of the household's income and resources, not just earned income.
finding the correct income limits for your household size is the first step in determining eligibility. in 2024, the amounts for 50% of the median income are as follows
2024 Hope Savings Account2 Application Guidelines (Income Limits by Household Size)
categorysingle person household2-person household3-person household4-person household median Income in 2024 2,228,445 3,682,609 4,714,657 5,729,913 upper income limit (50% or less of median income) kRW 1,114,223 1,841,305 KRW 2,357,329 KRW 2,864,957 KRW
3.2. Required Work Standards and Work Recognition Scope
at least one member of the household must be actively working and earning labor or business income. the range of income recognized as work is as follows
recognized income: Income from regular labor, business, and self-employment is recognized.
disqualified income: Income from financially supported jobs (e.g., jobs for the elderly, jobs for people with disabilities) where the government or local government directly pays all labor costs, as well as work scholarships for university work-study students, unemployment benefits, and parental leave allowances are not recognized as earned income.
3.3. Restrictions on multiple enrollment and risk of welfare benefit changes
in principle, Hope Savings Account 2 can only be signed up once per household. Therefore, if you have participated in or received benefits from national or local government asset-building support programs with similar targets or objectives, such as Hope Growing Account 2 or Happy Growing Account, you cannot sign up.
in addition, the Hope Savings Account 2 application process requires a thorough investigation of the household's income and assets. depending on the results of this investigation, eligibility for other welfare benefits, such as housing benefits and single-parent family support, may change or be suspended, so you should carefully consider your application.
4. structure of support benefits: transforming the 'Government Savings Grant' in 2025
at the heart of the Hope Savings Account2 is a savings matching supportthat maximizes the synergy between your efforts and government support to build wealth.
4.1. Current 1:1 matching structure (as of 2024)
participants are required to save at least 100,000 won per month, with a maximum monthly savings limit of 500,000 won. the government provides an earned income subsidy of KRW 100,000 per monthin a 1:1 matching system, meaning that if you save KRW 100,000 per month, you will receive a total of KRW 200,000. at the end of three years, they will have saved a minimum of KRW 3.6 million plus the government's KRW 3.6 million, for a total of KRW 7.2 million, plusinterest and additional support for each policy target.
4.2. Increased support in 2025
starting with new members in 2025, the government subsidy will be significantly expanded, allowing you to receive three times the amount of your savings in the third year.
year of enrollmentsavings (based on KRW 100,000/month)government Contribution (Earned Income Supplement)matching Rate year 1 100,000 KRW 100,000 KRW 1:1 2nd year 100,000 KRW 200,000 KRW 1:2 3rd year 100,000 KRW kRW 300,000 1:3
this sliding scale doubles the total amount of government support to KRW 7.2 million over three years, and ensures that subscribers will receive at least KRW 10.8 million at maturity, including KRW 3.6 million of their own savings [User Input]. this demonstrates the policy's strong commitment to helping low-income people build the seed money they need to become self-sufficient much faster.
5. how to apply and what to prepare thoroughly
applications must be made by visiting the administrative welfare center in the town or villageunder the jurisdiction of your address during the next recruitment period. The internet portal, the welfare homepage, is only for checking policy information, and actual welfare applicationsare not possible.
5.1. In-person application process and required documents
the most important thing to prepare for the next round of recruitment is document preparation. applicants need to submit complex documents such as the Social Security Benefit Provision Application Form, Financial Information Provision Agreement, property-related documents (such as lease agreements), and proof of work activity.
proof of earning activity, in particular, is key to proving eligibility and should be prepared thoroughly.
full-timeworkers: proof of employment (or proof of national pension enrollment/health insurance eligibility) and pay stubs for the last three months.
business earners: proof of income amount, proof of business registration, business lease agreement, etc.
the surest way to avoid wasting time is to call your local administrative welfare center before applying and double-check the list of documents you need to meet the latest standards.
6. key strategies for successful maturity payment: maintenance conditions and anti-reclamation know-how
in order to receive the full benefit of the Hope Savings Account2, you must fulfill three mandatory obligations during the three-year enrollment period. Failure to fulfill any of these obligations may result in the recapture of your government assistance.
6.1. 3 Mandatory Maintenance Conditions
maintain continuous work activity: At least one member of the household must be continuously employed and earning income during the three-year enrollment period.
complete 10 hours of self-sufficiency training: you must complete a total of 10 hours of self-sufficiency training over the 3-year period. Training can be completed through online video training or in-person training using the Asset Building Portal.
submit a plan to use the funds: You must submit a plan to use the funds for self-sufficiency and self-reliance, such as buying/renting a home, higher education and skills training for yourself or your children, business start-up/operation funds, medical expenses, etc. 5 Government subsidies require proof of at least 50% of the funds to be used for this purpose.
6.2. Suspension of Savings and Prevention of Reversionary Termination
if you don't contribute your own savings (at least KRW 100,000) each month, you won't receive any government assistance for that month. however, there is a suspension system in place in case of unavoidable reasons such as job loss, illness or accident of you or your dependents.
you can apply to your local government (administrative welfare center) to suspend your contributions for a total of six monthsduring your subscription period.11 During this period, you will not receive government benefits, but you can still maintain your passbook.
please note: If you accumulate more than 12 months of unpaidcontributions without first requesting to stop contributing, or if you fail to meet the education completion criteria before the end of your third year, this is grounds for reversionary termination. in the event of a clawback, your hard-earned government subsidy (Earned Income Support) will be returned in full, and you will only get back the principal and interest you have contributed. in case of hardship, you must contact the Administrative Welfare Center to take advantage of the stop accumulation system.
7. conclusion and strategies for the next round of recruitment
the Hope Savings Account2 is the most important government-subsidized savings program that provides working low-income people with real opportunities for self-sufficiency. the early closure of the last application period in 2024 means that the benefits of the program are significant and competition is fierce.
the next round of applications is a great opportunity to accelerate your asset building, especially since in 2025, the government subsidy will be increased by up to three times (in the third year) through annual sliding scale payments.
next rounds typically occur irregularly, between one and three times a year. to avoid missing out on this golden opportunity, you need to start preparing now.
gather your documents in advance: Organize and gather your work activity and income documents so that you're ready to apply when the call is announced.
regularly check the recruitmentschedule: It is essential to regularly check the schedule of new recruitment announcements through the administrative welfare center or welfare website under your address.
the Hope Savings Account2 is more than just a passbook, it's a stepping stone to greater independence in three years. start preparing now for the expanded benefits in 2025.