Starting next year, 160,000 young people without job experience will receive a monthly job promotion allowance of 650,000 won. Youth aged 19 to 34 will receive an annual cultural arts pass, and couples who register their marriage will receive 1 million won, expanding support for youth from employment to asset formation, housing, marriage, and childbirth.
The government approved the '2027 budget proposal' during a Cabinet meeting chaired by President Lee Jae-myung at the Blue House on September 1.
The budget for youth support will increase from 28.2 trillion won this year to 43.3 trillion won next year, a 53.5% increase.
Funding for job creation and entrepreneurship will rise from 36 trillion won to 51 trillion won. The number of beneficiaries for job experience and vocational training will expand from 560,000 this year to 720,000 next year.
The K-New Deal Academy, operated by large corporations, and AI-specialized K-Digital Training will be expanded, increasing the number of trainees in advanced and preferred fields from 60,000 to 120,000. Additionally, 60,000 university students will have the opportunity to gain work experience through internships that count for academic credit before graduation.
A new 'First Job Support Program' for youth without job experience will be established, providing job diagnostics and career counseling for 160,000 individuals, while the job promotion allowance will be raised from 600,000 won to 650,000 won.
The budget for asset formation support will increase from 29 trillion won to 42 trillion won. The budget for the Youth Future Savings program will rise from 7 trillion won to 17 trillion won, and the income requirement for participation, previously set at 75 million won, will be eliminated, allowing all youth to enroll.
The government contribution rate will remain at 6% for the standard plan, while the preferential plan will increase from 12% to 15%. A new preferential track will be established for youth working in small and medium-sized enterprises outside the capital region, with a contribution rate of 25%.
However, concerns have been raised that the elimination of income requirements will allow high-income youth earning over 100 million won to receive government support. Park Chang-hwan, head of the Budget Division at the Ministry of Strategy and Finance, stated, "Only 0.7% of all youth earn over 100 million won, and we determined that creating new criteria to differentiate them was not advisable."
The housing support budget will nearly double, increasing from 96 trillion won to 185 trillion won. The number of public rental housing units for youth will expand to 106,000, an increase of 35,000 units from this year.
In areas with convenient transportation, 20,000 units of universal public rental housing with a size of 50-84 square meters will be supplied. Additionally, 10,000 units of youth support housing will be newly provided outside the capital region, and the income criteria for youth monthly rent support will be relaxed from 60% to 100% of the median income.
The Youth Cultural Arts Pass will be restructured to provide 100,000 to 150,000 won annually to youth aged 19 to 34, instead of the previous one-time payment for those aged 19-20. Eligible expenses will now include performances, exhibitions, movies, books, and sports activities.
The budget for marriage, childbirth, and childcare support will increase from 53 trillion won to 61 trillion won. The marriage tax deduction will be converted into a cash marriage support grant, providing 1 million won to couples who register their marriage, effective from the second half of next year, with retroactive application for couples who register after January.
Childbirth and adoption tax deductions, first meeting vouchers, and parental benefits will be consolidated into childbirth support funds. The support amounts will be 10 million won for the first child, 12 million won for the second, and 15 million won for the third and subsequent children. Households residing in local areas will receive 15 million won for the first child, 17 million won for the second, and 20 million won for the third and subsequent children, distributed over four payments within a year.
The existing child allowance will be expanded and restructured into a basic child allowance for children aged 0-12. The basic payment will be 200,000 won per month, with 300,000 won for children residing in local areas. An additional 300,000 won will be provided for families raising children aged 0-1 at home.
* This article has been translated by AI.
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