The South Korean government plans to create 200,000 jobs in the private and public sectors for young people and train 100,000 young entrepreneurs by 2030. Young individuals employed by small and medium-sized enterprises (SMEs) in rural areas will receive a monthly support benefit of up to 1 million won for two years, combining incentives and savings contributions.
On August 28, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol chaired a meeting of the Emergency Economic Headquarters and the Economic Relations Ministers' Meeting, where the 'Youth Employment Recovery Plan' was finalized.
This initiative comes in response to the prolonged slump in youth employment. The employment rate for those aged 20 to 24 dropped from 46.0% in 2022 to 41.3% in the second quarter of this year. Similarly, the employment rate for those aged 25 to 29 fell from 72.5% in 2024 to 71.5% in the same period. Although the number of young people not engaged in work or job-seeking activities decreased to 378,000 in the second quarter of this year compared to the previous year, it remains at a high level.
In response, the government will establish a comprehensive support system that connects pre-employment talent development, job placement, and post-employment career management. The goal is to train over 300,000 professionals in advanced industries and fields preferred by youth by 2030, while creating 100,000 private jobs, 100,000 public jobs, and 100,000 youth startups.
◇ Next year, 50,000 direct jobs to be added; 80,000 advanced talent to be trained
Next year, the government plans to train approximately 80,000 more individuals than this year. This includes 20,000 for advanced industry vocational training in fields such as AI and semiconductors, 12,000 for specialized university and graduate school advanced personnel, and 7,000 for practical personnel in vocational high schools and polytechnic institutes.
The K-New Deal Academy, which utilizes facilities and specialized personnel from large corporations, will expand from 10,000 to 50,000 participants. Additionally, the number of university-centered boot camp participants will increase from 13,000 this year to 25,000 next year.
A new 'First Job Support Program' will be established to assist young people without work experience in utilizing the National Employment Support System. The job-seeking allowance will be raised from 600,000 won to 650,000 won per month.
The Youth Challenge Growth Support Project, which provides allowances and tailored programs for young people who have given up on job searching, will expand from 58,000 to 67,000 participants. An additional 6,000 vulnerable youth, including those who are isolated or caring for family members, will receive separate support.
A new 'Youth Playground' will be established to connect trained youth with actual job opportunities. This initiative will offer corporate projects, challenges, entrepreneurship, and mentoring from current professionals, matching youth with companies through regional technoparks and creative economy innovation centers.
The basic participation period will be six months, with the option to extend for an additional six months if necessary. Three to five signature centers will be remodeled to serve as hubs for the Youth Playground.
Next year, the government plans to increase private and public jobs by approximately 50,000 compared to this year. New jobs will be created in emerging industries, small and medium-sized enterprises, science and technology, and sectors such as culture, land, agriculture, and finance in the private sector, while the public sector will provide jobs related to delinquency management, AI, education, and welfare.
The government estimates that this plan will generate employment effects for over 90,000 individuals, including those resulting from expanded training. However, the direct increase in jobs next year is expected to be around 50,000. Among the additional 80,000 trained individuals, an estimated 40,000 employment effects are anticipated to materialize with a 52% employment rate over a 1-2 year lag.
◇ Youth job incentive up to 18 million won; savings matched by government at 25%
The Youth Job Leap Incentive will expand support for both companies and young individuals. Companies that hire young people who have completed competency programs will receive financial support, including those in metropolitan area SMEs and large companies outside the capital.
The youth support program will extend its reach from primarily non-metropolitan areas to include some young individuals employed in the metropolitan area. The maximum support amount for young people in non-metropolitan areas will increase from 7.2 million won to 18 million won over two years, averaging about 750,000 won per month.
A preferential track for the Youth Future Savings program for employees in local SMEs will also be established. The government’s matching contribution rate will increase from 12% to 25%, providing a support effect of up to 200,000 won per month.
The Youth Culture and Arts Pass will expand its eligibility from ages 19-20 to ages 19-34, providing support annually instead of once in a lifetime. The support amount will vary, with 100,000 won for metropolitan areas and 150,000 won for non-metropolitan areas.
The government anticipates that combining the job leap incentive, youth future savings, and culture and arts pass will result in a support effect of around 1 million won per month for young individuals employed by local SMEs over two years.
Career management after employment will also be strengthened. The Job Competency Bank will be revamped into a 'Career Bank' to link 19 types of information, including national technical qualifications and training history, and will add 10 types of information such as military service, certified private qualifications, and freelance work experience. However, registration in the Career Bank will not automatically be recognized as formal experience by companies, and each company will determine its recognition during the hiring process.
The period for income tax reduction for young employees in local SMEs will be differentiated, with five years for the metropolitan area, six years for large cities, seven years for other regions, and ten years for specially designated areas. The government also plans to introduce a 'Happy Workplace Certification System' next year to certify companies with excellent employment and working conditions and provide tax benefits.
* This article has been translated by AI.
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