"My Son Never Goes Outside"...As Staying Home Replaces Work, Social Costs Reach 5.3 Trillion Won

FKI Report on the Causes of Youth Withdrawal
9.83 Million Won in Annual Costs per Socially Withdrawn Youth
Need to Cut Off the "Taking a Break → Isolation → Withdrawal" Pathway

The annual socioeconomic cost of social isolation and withdrawal among young people in Korea has been estimated to reach 5.3 trillion won. Experts argue that customized measures to prevent social withdrawal among young people in long-term unemployment are needed.

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The Korea Economic Association announced on the 5th, through its report titled "Determinants of Youth Social Withdrawal and Estimation of Socioeconomic Costs," that, as of 2024, each socially withdrawn young person generates an annual cost of approximately 9.83 million won.

According to the report, the key factor that increases the risk of withdrawal among young people is difficulty in finding employment. When the probability of withdrawal was estimated by economic activity status, young people who were classified as "taking a break" had a 17.8% probability of withdrawal, and those in the initial stage of unemployment (one month of job seeking) had a 15.1% probability, which is about 6 to 7 times higher than that of employed young people (2.7%).

Report on Determinants of Youth Social Withdrawal and Estimation of Socioeconomic Costs. Korean Business Association

In particular, the longer the job-seeking period, the more rapidly the probability of withdrawal tended to increase. The probability of withdrawal for unemployed young people who had been seeking a job for one month was about 15.1%. When the job-seeking period reached 14 months, it rose to about 24.1%, and after 42 months, it exceeded 50%.

Experts point out that policy design is needed to cut off at an early stage the crisis pathway from being in a "taking a break" status to becoming socially isolated or withdrawn. They argue that support policies for young people who are "taking a break" and for those who are socially isolated or withdrawn should each secure their own specialization, while being designed so that the pre- and post-crisis stages are smoothly connected from the perspective of young people.

Lee Sangho, Head of the Economic Headquarters at the Korea Economic Association, said, "There is growing concern that social isolation and withdrawal among young people will intensify as employment difficulties overlap with the severing of social relationships," adding, "Systematic policies are needed, such as expanding dedicated organizations like Youth Future Centers to strengthen close support and increasing assistance for job seeking and work-experience opportunities for young people."