Asian Network of Major Cities 21 　Best practices

Best Practice

"Seoul Hope Plus Savings Account" ProgramSeoul

Purpose

To assist low-income citizens to escape poverty, have a more positive outlook on life, and ultimately become more financially independent.
Outline:

For 3 years, the Seoul Metropolitan Government and private sponsor organizations make savings for the account holder in the same amount that the account holder makes savings.
[For example, if the account holder makes savings of 200,000 KRW per month for 3 years (7,200,000 KRW), the Seoul Metropolitan Government and private sponsor organizations will make savings of 200,000 KRW per month for 3 years (additional 7,200,000 KRW) in the account holder's name, so that he/she can ultimately save double the amount plus interest.

We provide financial education, family counseling and other additional services to help them become more financially independent and to encourage them to have a positive outlook on life.
Conditions to become an account holder:

(1) Must be 18 years old or older
(2) Must reside in Seoul
(3) Must receive the "National Basic Livelihood Security Program" or be in the second highest class to receive welfare
(4) Must be currently employed and have received earned income for 10 months or more over the last year

・ In our pilot project (from 2007 to 2010), 98 out of 100 account holders successfully completed this Seoul Hope Plus Savings Account program. A total of 19,000,000 KRW was obtained by the account holders, and 61% (60 account holders) of them improved their living environment thanks to this program.
・ This project is a new kind of welfare program first started by Seoul, in which we make savings for the account holder in the same amount that the account holder makes savings, so as to raise their morale and boost their motivation to work.
・ Currently, 30,000 low-income citizens participate in this program.

・ As a future-oriented welfare program, we minimized the number of people who quit making savings. We also encourage them to become more financially independent and improve their morale and motivation to work.
・ This program received the UN Public Service Award in 2010, and was recognized worldwide as a successful welfare program.
・ This program completely changed the existing paradigm of general welfare programs, and the Korean central government decided that this program should be implemented nationwide.
・ We established a firm network with private sponsor organizations, and a more lively contribution atmosphere was encouraged in the society.

Budget (2011)
・ Budget from Seoul Metropolitan Government: 14.9 billion KRW
・ Support from private sector: 14.9 billion KRW

Ms.Misun KIM
International Cooperation Division, Seoul Metropolitan Government
（Tel.）　+82-2-6321-4493
（Mail Address） intlseoul@google.com