The government plans to increase next year's youth-related budget by more than 15 trillion won compared to this year, setting it at 43.3 trillion won. This will expand government benefits for first-born children in designated local areas to a maximum of 195.82 million won, available until they turn 34.
On August 28, President Lee Jae-myung hosted the 'Youth Budget Unboxing 2027' event at the Blue House, where the 'Comprehensive Investment Strategy for Youth Growth Stages' was announced.
The financial investment for youth-related initiatives will rise from 28.2 trillion won this year to 43.3 trillion won next year, an increase of 15.1 trillion won (53.5%). The support scope will expand from job creation to include birth, childcare, education, employment, asset formation, housing, and marriage.
According to government estimates, the maximum benefits an individual can receive are 140.57 million won by age 18 and 195.82 million won by age 34. This assumes a first-born child born in a designated local area in 2027, with parents earning 100% of the median income, combining support across various growth stages.
◇New Child Independence Fund Offers Up to 100 Million Won; 20 Million Won for Birth
A new 'Child Independence Fund' will be established, allowing the government and parents to jointly save and invest from birth until the child turns 18. Depending on contributions and investment returns, the fund is designed to provide between 60 million and 100 million won at maturity.
For children from households earning less than 50% of the median income, the government will provide 1.2 million won annually, regardless of parental contributions. For households earning between 50% and 100% of the median income, if parents contribute 500,000 won, the government will match it with 1 million won. For households earning between 100% and 150% of the median income, a parental contribution of 1 million won will be matched by the government with another 1 million won.
Child allowances, parental benefits, and first meeting vouchers will be integrated and restructured. Starting July 2027, child support payments of 10 million to 20 million won will be distributed in four installments based on birth order and residence.
A basic child allowance will also be introduced at the same time, providing up to 600,000 won per month for children aged 0-1 and up to 300,000 won per month for those aged 2-12. Pregnant women will receive a monthly package of eco-friendly agricultural products worth 40,000 won for 12 months.
Couples who have registered their marriage will receive a one-time marriage support payment of 1 million won, regardless of income. If either spouse meets the general income criteria, they will be eligible for housing purchase or lease policy loans, reducing disadvantages based on combined household income.
◇Full Tuition Coverage for Local National Universities; 60,000 Students Gain First Job Experience
Full scholarships will be established for 30 local national universities, excluding medical and pharmacy fields. An investment of 600 billion won will be made to enhance infrastructure for training talent in advanced fields at local private universities, increasing the number of regional talent scholarship recipients from 4,000 to 10,000.
University and graduate students will have access to a consortium-based AI subscription service, allowing them to utilize generative AI without personal costs. An 'X+AI Transition Curriculum' combining existing majors with AI will be introduced at 40 universities, accommodating 20,000 students. The annual education cost is set at 6.7 million won, with top students receiving 800,000 won monthly.
Sixty thousand university students will participate in the 'First Job Project,' gaining work experience in companies and local settings. The government and businesses will share the internship support costs, providing participants with 2.3 million won monthly.
The number of participants in the K-New Deal Academy will increase from 10,000 to 50,000, while AI vocational training will expand from 10,000 to 20,000. Small and medium-sized enterprises hiring training graduates will receive an annual incentive of 7.2 million won, while regional large companies will receive 3.6 million won.
The government aims to create 200,000 private and public youth jobs by 2030 and nurture 100,000 young entrepreneurs. Up to 150 million won will be provided to 200 technology-based youth startup companies.
Youth under 35 starting a business within five years will receive 60-80% of their startup insurance premiums covered. The plan includes coverage for demolition costs, rent, and re-establishment costs up to 20 million won in case of business closure.
◇Interest Exemption Before Employment; Monthly Rent Support Income Criteria Expanded
Unemployed youth with an annual income of 35 million won or less will be eligible for the 'Youth Opportunity Fund,' providing up to 20 million won over their lifetime. They can borrow a maximum of 5 million won at once and up to 7.5 million won annually. Interest will be waived during the grace period before employment or entrepreneurship, with a subsequent interest rate of 2-5% applied.
The general youth savings plan will eliminate income requirements. The government contribution rate for the preferential plan will increase from 12% to 15%, with a 25% rate for employees of local small and medium-sized enterprises.
The income criteria for youth monthly rent support will expand from 60% to 100% of the median income. The support period for youth in lower-income brackets will double from 24 months to 48 months. The monthly rent tax deduction rate for youth will be set at 17%, with the deduction limit raised from 10 million won to 12 million won annually.
The proportion of public rental housing available to youth will be set at over 50%. The support limit will be increased to 240 million won, and the income criteria for youth lease rentals will be relaxed.
Youth under 39 purchasing non-apartment housing or officetels for the first time will be eligible for the 'Youth Future Housing Loan.' Young individuals with an annual income of 70 million won or less will benefit from a maximum loan-to-value ratio (LTV) of 80% and preferential interest rates of up to 2.1 percentage points. The supply scale will be 30 trillion won, operating for two years.
A combined guarantee for lease and monthly rent loans, the 'Youth Lease-Monthly Rent Combined Guarantee,' will also be provided, with a scale of 45 trillion won over two years. The loan limit will be up to 200 million won, covering 90% of the rental deposit, while newlywed and child-rearing households can access up to 300 million won.
To support living expenses, the government will provide a cultural pass annually to all youth aged 19-34, adding sports to the list of eligible activities for performances, exhibitions, movies, and books. The 'Soldier Tomorrow Preparation Savings' program will match monthly contributions of up to 550,000 won.
The government plans to establish a future response fund using additional tax revenue, focusing on investments in youth jobs, assets, housing, marriage, and childbirth initiatives. A mid- to long-term national development strategy will also be announced within the year to proactively prepare for structural changes.
* This article has been translated by AI.
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