In This Situation... Government Showing Off Youth Policy Measures

'Youth Life Improvement Plan' Announced... Criticism Over Targeting 20s Votes for General Election
Abolition of Single Passport System for Unserved Military Service Youth Aged 25 and Over
Expansion of Youth Jeonse Loan Support... Efforts to Reduce Student Loan Burden

[Asia Economy Reporter Kwangho Lee] The government has decided to abolish the single-entry passport system for young men over 25 who have not completed military service and to support public transportation costs for youth. It also announced measures to increase the age limit and loan amount for jeonse loans and reduce the burden of student loans. However, there is an analysis that these youth support measures were hastily introduced just over 20 days before the general election to capture the votes of people in their 20s.

On the 26th, the government finalized and announced the "Youth Life Improvement Plan" at the National Affairs Inspection and Coordination Meeting chaired by Prime Minister Chung Sye-kyun. The government explained that it received about 580 policy proposals from young people and selected 34 tasks in five areas: living support, participation and rights, jobs, housing, and education.

Looking into the youth improvement plan announced by the government, the one-year single-entry passport system for young men over 25 who have not completed military service will be abolished, and issuance of a general multiple-entry passport valid for five years will be allowed. This is scheduled to be implemented from the second half of this year through amendments to the Passport Act, and about 130,000 people are expected to benefit.

In addition, the government plans to support youth public transportation costs through partnerships with credit card companies. When walking or cycling to a bus stop or subway station, 250 to 450 won will be credited per 800 meters according to transportation costs. This can result in a monthly discount of 10,000 to 20,000 won.

Along with this, the age limit for the "Youth Support Jeonse Loan" will be raised from the current 25 to 35 years old, and the loan limit will be increased from 35 million won to 50 million won.

Furthermore, various scholarship supports will be expanded, including easing the repayment burden of student loans. Among government-guaranteed student loan borrowers, 27,000 young people have become credit delinquents due to long-term arrears. The government plans to improve the current delinquency interest reduction installment system from 0?0.9% to 0?0.2% to encourage sincere repayment and provide relief.

Also, to allow vocational college students with excellent employment capability development efforts and achievements to focus on their studies and self-development, full annual tuition will be supported for 1,000 students per semester, and among them, 300 students will receive an additional living expense support of 4 million won.

In this regard, experts advise that the measures should not be mere populism for the general election to win youth votes. Oh Jung-geun, a special professor at Konkuk University, strongly criticized, saying, "It is not desirable to flood measures targeting specific groups," and "Supporting youth by depleting finances will boomerang like Greece and Italy, which collapsed due to welfare populism."

A comprehensive roadmap and implementation plan for youth policy will be included in the Basic Youth Policy Plan (2021?2025) to be prepared in November this year, as well as in the annual implementation plans of each central government ministry and local government.