Told to Prepare for Employment... Used Youth Allowance to Eat Hanwoo Omakase and Remove Tattoos

Looking at the Youth Allowance Activity Records... Blind Spot Controversy
271.5 Billion Won Paid from 2016 to Last May
Profiting by Using Cash Instead of 'Clean Card'

It was found that the youth allowance provided by the Seoul Metropolitan Government was used for tattoo removal procedures or unnecessary expenses such as Korean beef omakase.

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On the 3rd, Heo Hoon, a member of the Seoul Metropolitan Council's Urban Planning and Balance Committee, analyzed 70,000 cases of the '2023 Youth Allowance Self-Activity Records' and revealed blind spots in the management of the youth allowance.

The youth allowance is a system that supports unemployed high school and university (graduate) graduates aged 19 to 34 residing in Seoul to explore career paths or prepare for employment without being constrained by their economic situation. Seoul City provides an activity support fund of 500,000 KRW per month for up to six months.

Since the youth allowance system was first introduced in 2016 until May of this year, a total of 271.5 billion KRW has been paid to 108,000 people over seven years.

Although the youth allowance was implemented with good intentions, problems were found in cash usage. In principle, the youth allowance must be paid only by a check card called a 'Clean Card.'

The Clean Card cannot be used for restricted businesses such as entertainment establishments, bars, and department stores. However, it was found that the youth allowance could be used by first using cash and then submitting receipts as a 'trick.' According to the Future Youth Planning Group, as of last year, it is estimated that 33.8% of the youth allowance was paid in cash.

According to Representative Heo, the youth allowance was used for some items that cannot be paid with the Clean Card, and cash was claimed. Representative examples include paying credit card bills, booking accommodations, and paying savings or subscription deposits for personal asset accumulation. Cash was also used for transfers to date accounts or group accounts.

From Tattoo Removal to Omakase with Youth Allowance: "Not Illegal, but..."

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Although not items prohibited from Clean Card payment, there were also socially excessive consumption items. For example, one youth withdrew 500,000 KRW in cash to use for a tattoo removal procedure. Another youth used the youth allowance to dine at a Korean beef omakase restaurant worth about 200,000 KRW in cash and then reimbursed it with the youth allowance.

Regarding this, the Future Youth Planning Group explained, "In principle, it is not illegal because dining at restaurants with the youth allowance is allowed," but added, "It is true that there are criticisms that it is excessive by social standards."

Representative Heo analyzed that such situations arise because cash use is allowed without restrictions on purpose, but there are insufficient control measures. In fact, since Seoul City implemented the youth allowance project in 2016, there has not been a single case detected for misuse.

He added, "The proportion of youth allowance used through cash withdrawals and account transfers is increasing every year," and pointed out, "Appropriate control measures must be established as soon as possible."

In response, Kim Cheol-hee, head of the Seoul Future Youth Planning Group, said, "More than 95% of youth receiving the allowance with a median income below 90% spent the funds frugally," but also stated, "We will prepare measures to ensure that the youth allowance is not used for items that cause social rejection to meet public expectations."