Gov't, PPP unveil youth employment support measures

The People Power Party (PPP) and the government are set to introduce a range of policies aimed at supporting young adults, including a 16% increase in the budget for youth employment in the 2025 fiscal plan, alongside the launch of a new savings deposit program in October that will offer preferential benefits to workers employed by small and medium-sized enterprises (SMEs). Additionally, they will expedite the passage of the proposed Act on Support for Youth in Socially Vulnerable Groups and allocate 20 billion won in financial assistance to long-term unemployed youth.

In a joint conference addressing youth unemployment, the government and the ruling party announced plans to increase the youth employment budget by 323.3 billion won year-on-year, bringing the total to 2.2922 trillion won. PPP Chairman Han Dong-hoon emphasized the party’s commitment to addressing inequality: "The People Power Party seeks to be a champion for the youth. Our policies are designed to bridge societal gaps and improve the lives of young people."

Among the key initiatives is the expansion of individual-specific employment support services, which will increase the number of eligible applicants from 120,000 to 180,000. To further assist long-term unemployed youth, the personal information of 1.5 million state scholarship recipients will be shared with employment insurance services, with 20 billion won earmarked to provide targeted employment support.

The government also plans to incentivize youth employment in SMEs through a new savings deposit program. Under this scheme, workers can contribute between 100,000 and 500,000 won, with employers matching 20% of the deposit amount. In addition, banks will offer a preferential interest rate of 1-2% above standard rates, and the government will provide tax benefits, allowing young workers to accumulate substantial savings. To assist job seekers, information on 30,000 high-quality SMEs, as identified by various ministries, will be made publicly available.

The ruling party is also working to establish a targeted support system for youth in crisis, including those caring for family members or experiencing social isolation, with a view to giving them opportunities for a fresh start. Efforts to pass relevant legislation will be accelerated, ensuring timely support for this vulnerable demographic.


Hye-Ryung Choi herstory@donga.com