Democratic Party reviews 'Child Asset Formation' pledge to save 100 million won with government support until age 18

The Democratic Party of Korea is said to be considering a proposal to save 100 million won with government support from birth until age 18 as a presidential campaign pledge.

According to the Korea Herald on the 29th, the Democratic Party is reviewing a policy titled 'Saving 100 million won by age 18.' This content was also included in last year's general election pledge.

The core of this policy is significantly expanding the child allowance. There is consideration to expand the age range of the beneficiaries from under 8 years to under 18 years and to double the amount from 100,000 won to 200,000 won per child per month.

Asset formation program created by the government and parents

The plan also includes the government depositing 100,000 won monthly into a fund account from birth until age 18. Parents can also contribute an additional 100,000 won. The design allows for exemption from gift tax.

The principal and earnings of the fund will be tax-free, and the funds can only be used for purchasing homes, starting businesses, marriage expenses, and educational expenses after the child becomes an adult.

By consistently saving until age 18, it is possible to form an asset of about 100 million won. If the child allowance is used for living expenses or if the fund account experiences low returns, the actual amount received may decrease.

The maximum point of contention is expected to be securing funding. According to an analysis by the National Assembly Budget Office on similar bills, an average annual funding of 20 trillion won will be required over the next five years.

Meanwhile, presidential candidate Lee Jae-myung will hold a meeting of the election committee tomorrow (30th). He has proposed an integrated staffing plan that encompasses both conservative and progressive sectors as a basic outline for restoring the constitutional order.

So far, it has been confirmed that former Minister of Environment Yoon Yeojun, a member of the conservative camp, will serve as the permanent election committee chair.

It is also anticipated that former South Gyeongsang Governor Kim Kyung-soo from the pro-Moon faction and former Chairman Park Yong-jin from the non-Lee faction will join the election committee of candidate Lee.

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