South Korea Unveils 43.3 Trillion Won Budget Plan for Youth Support

By Kang Yoon-seung

SEJONG, Aug. 28 (Yonhap) -- South Korea on Friday unveiled part of its 2027 budget plan aimed at supporting young people, pledging to allocate 43.3 trillion won (US$31.4 billion) for tailored fiscal support at different stages of their lives.

The budget proposal, unveiled by the Ministry of Planning and Budget during the "2027 Youth Budget Unboxing" event at the presidential office earlier in the day, marks a 53.5 percent increase from the 28.2 trillion won earmarked for related projects this year.

"Recently, young people's entry into the job market has been delayed due to changes in the industrial structure. They are also facing other challenges, including growing difficulties in building assets," the budget ministry said in a release.

"Existing youth policies have not fully addressed such changes, and young people have expressed difficulties in identifying available support in a timely manner, as policies have largely been implemented through individual programs," it added.

The ministry said the 2027 budget plan reflects a shift in the government's approach toward young people, viewing them not as a group in need of assistance but as a key investment priority for strengthening the country's future capabilities.

Under the package, a first child born in 2027 in an area eligible for preferential regional support could receive benefits and savings worth up to 140.57 million won by age 18 under an illustrative scenario presented by the ministry.

The cumulative amount could reach 195.82 million won by age 34, including full tuition support available at eligible national universities outside the Seoul metropolitan area.

For example, the government will provide 15 million won in subsidies at birth, along with a total of 14.4 million won in monthly childcare subsidies through the age of 1 for kids raised at home.

From the ages of 2 to 12, a child could receive a total of 39.6 million won in subsidies.

A child enrolled in the government's new savings program could additionally save 71.5 million won through contributions from both parents and the government from birth through the age of 18.

From the ages of 19 to 34, young people could receive various forms of financial assistance, including college tuition support and job training programs, as well as a 1 million-won marriage grant.

The 2027 budget plan also includes measures to reduce disparities in access to education, housing and asset building.

Programs include supporting university students' subscriptions to AI services and helping them build AI-related skills for use in their studies, job searches and workplaces.

The government will provide full scholarships to students at national universities outside the Seoul metropolitan area to ease their financial burden and attract talented students to the regions.

South Korea will also supply larger public housing units in sought-after locations near public transportation hubs.

The government will introduce financial packages offering low-interest loans to unemployed young people seeking jobs or starting businesses as well.