Ruling Party and Government Drastically Increase Youth Employment Support Budget... Promote Legislation for Isolated and Withdrawn Youth Act

Youth Employment Support Budget Increased by 16% to 2.2922 Trillion Won
Establishing a System to Identify Long-Term Unemployed Graduates
Dedicated Support System for At-Risk Youth

The People Power Party and the government decided on the 24th to significantly increase the budget for youth employment support. They also plan to create a dedicated support system for isolated and reclusive youth and to promote the enactment of related laws.

On the same day, the party and government held a ‘Party-Government Council on Youth Employment Support Measures’ at the National Assembly. After the meeting, Kim Sang-hoon, the Policy Committee Chair of the People Power Party, announced, "Next year, under the sound fiscal policy direction, we will actively support expanding the budget in the employment support sector that youth truly desire, so that the future generation of youth can overcome difficulties in securing jobs," adding, "The youth employment support budget will increase by 16%, from 1.9689 trillion won in 2024 to 2.2922 trillion won."

Handonghun, leader of the People Power Party, is taking a commemorative photo with Kim Munsu, Minister of Employment and Labor, and others at the party-government meeting on youth employment support measures held at the National Assembly on the 24th. Photo by Kim Hyunmin kimhyun81@

The budget for projects such as supporting students’ early entry into the labor market, discovering and providing recovery support for long-term inactive youth, supporting working youth to settle in jobs, promoting youth employment in small and medium-sized enterprises (SMEs), and revitalizing youth entrepreneurship will be significantly increased.

First, the target for customized employment support services will be expanded to 180,000 current students and 60,000 graduates, and opportunities for youth to gain work experience in their desired job fields at companies will also be increased. To systematically and promptly identify ‘long-term inactive’ youth, a system will be established that links information from 1.5 million applicants for national scholarships with employment insurance data to discover long-term unemployed individuals after graduation and provide close employment support services. The number of participants in the ‘Youth Challenge Support Project’ will be expanded to 12,000 to encourage youth who have given up job searching to challenge employment again. To help working youth settle in their workplaces, workplace adaptation programs will be introduced, and a new budget for improving working environments in small but strong companies will be established and supported.

In October this year, a ‘Preferential Savings Deduction for SME Employees’ will be launched to provide opportunities for employees working at SMEs to accumulate lump sums. Workers will contribute about 100,000 to 500,000 won, companies will provide support, banks will apply preferential interest rates, and the government will offer tax benefits.

Additionally, the party and government will establish a dedicated support system for youth in crisis to ensure they do not fall behind in competition and have a fair starting opportunity. They will also enact a tentative law concerning support for vulnerable youth. The related budget will be reflected in this year’s budget review.