Youth Allowance Becomes More Thorough and Stringent... Strengthened Monitoring of Allowance Usage

Introduction of Six-Month Long-Term Mentoring by Professionals
Allowance Payments Suspended for Improper Use

The Seoul Youth Allowance is undergoing a complete transformation. It will provide more meticulous support through customized programs and long-term mentoring, and rigorously verify whether the allowance is being used according to the project’s purpose through in-depth monitoring.

On the 5th, the Seoul Metropolitan Government explained the changes to this year’s Youth Allowance. The Seoul Youth Allowance is a program that provides up to 500,000 KRW per month for a maximum of six months to unemployed youth aged 19 to 34, along with customized programs to support their growth.

This year, the city has segmented the career-setting stages for youth so that each individual can participate in programs suited to their career stage. The stages are divided into four: ▲Self-understanding ▲Career exploration ▲Job specification ▲Job seeking and employment. For example, youth in the 'Self-understanding' stage are offered programs such as strength-finding workshops and aptitude-based career design seminars, while those in the 'Job seeking and employment' stage receive support with resume writing, interview preparation, and other programs.

Youth centers in each autonomous district provide comprehensive counseling and education. Community programs are also operated to help youth form social relationships by facilitating exchanges and network building.

A new six-month long-term mentoring program has been introduced, where current employees from companies share employment know-how with Youth Allowance participants. By recruiting active professionals, a pool of mentors from various fields such as employment, entrepreneurship, exams, and culture is formed, and they share their experiences and advice with the participants.

Additionally, Seoul conducts in-depth monitoring to ensure participants use the allowance appropriately and only in places where cash usage is permitted. Monthly surveys are conducted with participants to check for inappropriate cash usage or any cash transactions outside permitted categories. The Seoul Youth Allowance must be used via a check card with a Clean Card function, and payments are blocked at 48 types of businesses including luxury hotels, jewelry stores, and bars. Cash usage is exceptionally allowed only for essential items such as housing costs and utility bills.

If inappropriate cash usage is detected, the Youth Allowance may be suspended or previously paid allowances may be reclaimed. When cash is used in permitted categories, supporting documents must be submitted, and if the requested supplements are insufficient or not provided, the allowance will be discontinued. Last year, a total of 38 participants had their Youth Allowance payments suspended due to related issues.

This year, the city will provide the Youth Allowance to 20,000 people. Applications will be accepted online through the Youth Mongttang Information Portal from 10 a.m. on the 6th until 4 p.m. on the 13th. Unemployment status is determined based on employment insurance enrollment, and income requirements stipulate that the monthly health insurance premium must be at or below 150% of the median income.

However, basic livelihood security recipients and near-poverty groups are excluded from the Youth Allowance program to prevent restrictions on existing benefits, as the allowance is calculated as part of the recipient’s income. Overlapping participation with the Ministry of Employment and Labor’s National Employment Support System, Seoul’s Youth Monthly Rent Support, and the Hope Double Youth Account program is not allowed.

Kim Cheol-hee, Director of Future Youth Planning at Seoul City, stated, "The Seoul Youth Allowance aims not to just give fish to youth but to teach them how to fish. We will further strengthen job-seeking programs and more." He added, "We want to create a virtuous cycle system where previous participants can participate as mentors and give back the benefits they received to society."