[2022 Economic Policy] Youth Receiving 200,000 KRW Monthly Rent Support to Get Additional Interest-Free Rent Loans

Responding to 'New Polarization' in Education... Free EBS Textbooks for Housing Benefit Recipients

Samsung, Hyundai, SK, LG Join Youth Hiring Program, Expanding to SMEs and Platform Companies

[Sejong=Asia Economy Reporter Moon Chaeseok] The government will expand support to allow young people receiving a monthly 200,000 won housing benefit to obtain interest-free loans within the remaining monthly rent amount. It diagnosed that new polarization phenomena are spreading in fields such as education due to COVID-19 and will provide EBS (Korea Educational Broadcasting System) textbooks free of charge to housing benefit recipients. Additionally, the 'Youth Hope ON Project,' a recruitment initiative involving Samsung, Hyundai Motor, SK, LG, KT, and POSCO, will be expanded to include small and medium-sized enterprises and platform companies.

On the 20th, the government announced next year's economic policy direction containing these details. The government will also simultaneously support youth asset accumulation and employment. Young people receiving a monthly housing benefit and special monthly rent support of 200,000 won will be allowed to receive interest-free rent loans equivalent to the remaining rent amount. For example, if the monthly rent is 400,000 won and the youth receives a special support of 200,000 won, they will be eligible for an interest-free loan support of the remaining 200,000 won. The support rate for remote lecture fees for military personnel will be increased from 50% to 80%, and the number of supported personnel will be raised from 22,000 to 24,000. To encourage university participation, the status of remote military service lectures operated by each university will be disclosed every June.

Source: Ministry of Economy and Finance

The government diagnosed that polarization phenomena have expanded in education and other areas due to the spread of COVID-19 and designed support policies accordingly. First, approximately 310,000 education benefit recipients will receive a special support of 100,000 won per person this year for textbook expenses and more. Consulting services such as teacher academic diagnosis and career guidance will be expanded from high school students to elementary and middle school students. The policy of free EBS textbook provision, currently applied only to households receiving livelihood, medical, and education benefits, will be extended to households receiving housing benefits. Next year, city and provincial basic academic support centers will be newly established, and the enforcement decree of the Basic Academic Guarantee Act, to be implemented in March next year, will be prepared.

The government secured a firm commitment from six major companies, including Samsung, to create 179,000 new jobs and plans to increase the number of companies participating in the highly anticipated 'Youth Hope ON Project.' The project will be expanded to small and medium-sized enterprises and platform companies. Participating companies will provide a package including youth recruitment expansion, education and training, and mentoring. The government will support infrastructure such as training costs, internship allowances, and educational spaces. Furthermore, with an investment of 17 billion won, a new 'Youth-Friendly Corporate ESG (Environment, Social, Governance) Support Project' will be established to support the development and operation costs of corporate youth employment support programs such as job training and work experience.

Welfare for vulnerable groups regarding livelihood and care will be strengthened. In particular, the system will be improved to allow severely disabled young people in their 20s, whose parents live separately, to receive livelihood benefits as individual households. A 'Home Medical Center' will be introduced to provide medical and care services at home. For emergency care, starting next year, pilot support will be extended to households in crisis due to diseases and accidents other than COVID-19.