[2nd Supplementary Budget] Party and Government Take Care of Youth... "Considering Disaster Relief Payments for Dual-Income Couples with Income of 100 Million Won"

1.8 Trillion KRW Budget for Four Major Areas: Youth Jobs, Startups, Housing, and Living & Finance
Ruling Party Considers Providing Support to Dual-Income Couples with Annual Income Over 100 Million KRW, Expected to Be Excluded from Disaster Relief Funds

Yoon Ho-jung, the floor leader of the Democratic Party of Korea, is delivering opening remarks at the '2021 2nd Supplementary Budget Party-Government Consultation' held at the National Assembly Members' Office Building on the 29th. Photo by Yoon Dong-ju doso7@

[Sejong=Asia Economy Reporter Kim Hyunjung] The ruling party and government are pouring a budget of 1.8 trillion KRW into youth-focused sectors such as jobs, startups, housing, and finance through the second supplementary budget bill, responding swiftly to the growing discontent among young people. Additionally, as complaints arise from dual-income couples with an annual income exceeding 100 million KRW who are expected to be excluded from disaster relief payments, the ruling party is working on measures to provide support funds to them as well.

According to the '2021 Second Supplementary Budget Bill' announced by the Ministry of Economy and Finance on the 1st, the government will focus approximately 1.8 trillion KRW on four major areas targeting youth: jobs, startups, housing, and living & finance through the Youth Hope Ladder Package. First, it will provide 500,000 KRW (for 24,000 people, 6 billion KRW) and 700,000 KRW (for 30,000 people, 21.5 billion KRW) respectively to vocational high school and junior college students and graduates for obtaining certifications. It will also launch projects to nurture AI and software-related talent and expand job opportunities. Additionally, 400 billion KRW is allocated for job support including vocational training and job search services.

To encourage youth to actively enter the startup market, 650 billion KRW will be newly supplied through funds such as the mother fund and policy loans for capital supply. To support promising startups in attracting global venture capital (VC) investments and overseas expansion, 70 billion KRW from this supplementary budget will be used to expand the global investment fund from 200 billion KRW to 400 billion KRW. To foster a relatively underdeveloped startup ecosystem outside the metropolitan area, the regional New Deal venture fund will also increase from 170 billion KRW to 230 billion KRW.

Alongside this, to alleviate housing cost burdens for youth, 5,000 additional jeonse rental housing units will be secured near subway stations and university areas for affordable leasing. This project will invest 300 billion KRW from the supplementary budget and 400 billion KRW from the existing budget. Furthermore, the jeonse return guarantee fee will be extended for six months until the end of this year.

A living support plan closely related to daily life has also been prepared with a budget of 100 billion KRW. To improve the quality of meals for soldiers in their 20s, the military meal unit price will be significantly raised from 8,790 KRW to 10,000 KRW starting today. The asset-building support program through a three-way matching system among youth, companies, and government for newly hired youth in small and medium enterprises will increase from 100,000 to 120,000 people. The Sunshine Loan, which offers low-interest loans at 3-4% to low-income youth and college students with annual income below 35 million KRW, will be expanded by 100 billion KRW to a total of 333 billion KRW.

Moreover, the ruling Democratic Party is also considering expanding the disaster relief payment target to include dual-income couples with an annual income over 100 million KRW. This policy is aimed at young couples in their 20s and 30s who have relatively small assets but high income levels due to dual incomes. These couples have expressed strong dissatisfaction as they have been excluded from various government policy supports, including special housing supply for newlyweds. Regarding this, Democratic Party leader Song Young-gil said in a media interview yesterday, "Even households with an income over 100 million KRW, which corresponds to the top 20%, are middle class if the couple both work," and added, "We will prepare supplementary measures to provide disaster relief funds to dual-income couples."

In response, a Ministry of Economy and Finance official explained, "Specific and technical payment criteria will be discussed through a task force (TF) team in the future," adding, "However, if dual-income couples have different registered addresses, we plan to recognize and reflect livelihood separation, as was done during last year's nationwide disaster relief payment."