[Exclusive] Ministry of Economy and Finance to Establish Dedicated Youth Team

Establishment of Youth Economic Policy Division and Population Strategy Division... Request Submitted to Ministry of the Interior and Safety

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The Ministry of Economy and Finance is pushing to establish a dedicated department for youth policy. This move aligns with the recent efforts by the Democratic Party of Korea to strengthen youth policies. The Democratic Party has actively committed to addressing youth employment, housing, and asset issues after losing support from people in their 20s due to tightened regulations on real estate and virtual currencies.

According to the government on the 4th, the Ministry of Economy and Finance recently requested the Ministry of the Interior and Safety, which manages government organization, to establish a 'Youth Economic Policy Division.' It is known that the motivation behind creating this dedicated youth department stems from the will of Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki. On the 17th of last month, Hong expressed his commitment to strengthening policies through his social media, stating, "The approach to youth issues must change," and "We will do our best to build a strong ladder of hope in our society from three economic perspectives: youth employment, youth housing, and youth asset formation."

Currently, the Ministry of Economy and Finance’s Job Economy Support Division handles youth policy, but only one administrative officer is in charge, which is seen as insufficient to comprehensively oversee youth policies.

Although the final consultation process remains, the Ministry of the Interior and Safety is also positively considering the proposal, given that there has been no youth-related department within the Ministry of Economy and Finance until now. A government official stated, "Related ministries such as the Office for Government Policy Coordination, the Ministry of Economy and Finance, and the Ministry of Employment and Labor gather to discuss youth policies, but only the Ministry of Economy and Finance lacks a dedicated youth-related department," adding, "Considering the recent worsening youth unemployment due to COVID-19 and the generation gap emerging in housing and assets, active policy responses are necessary."

Experts agree on the need to establish detailed policies through a new organization. Professor Kim So-young of Seoul National University’s Department of Economics emphasized, "The government is creating jobs for youth, but there is also a mismatch problem," and added, "It is necessary to carefully design policies that meet the actual needs of the demand side." She further stated, "If income does not occur immediately, it is equivalent to depriving youth of the opportunity to dream about the future," emphasizing that "youth employment issues must be resolved as a top priority."

Meanwhile, the Ministry of Economy and Finance has also requested the establishment of an additional Population Strategy Division to respond to demographic changes such as low birth rates and aging.

This content was produced with the assistance of AI translation services.