[The Editors' Verdict] Policy Sets the Limit at 34, Reality at 39

Bank Savings Cut Off at 34, Housing Support at 39...

Different Definitions of 'Youth' Across Government Agencies

Delayed Jobs, Marriage, Childbirth—Youth Policy Must Be a Growth Strategy, Not Welfare

Redefining 'Youth' Matters More Th

The "Youth Future Savings" program, launched by the government to help young people build assets, is enjoying remarkable popularity. The number of applicants has exceeded 2.34 million. By saving up to 500,000 won per month for three years, participants can accumulate over 22 million won by combining government support and tax exemption benefits. However, eligibility is limited to those aged 19 to 34. In contrast, the "Youth Safe Housing," a flagship housing policy of Seoul City, allows residents aged 19 to 39. Reflecting the reality that job preparation, studies, marriage, and independence are increasingly delayed, even those in their late 30s are now considered part of the vulnerable youth housing group. Seoul City plans to standardize the upper age limit for youth-related employment ordinances at 39 years old. In the second half of the year, the city will also revise the age standard for the "Ordinance on Supporting Youth Unemployment and Employment at SMEs," raising the limit from the current 29 to 39.

Different government ministries do not follow a single standard either. The Ministry of Employment and Labor mostly bases youth employment policies on an upper age limit of 34, and the Youth Employment Quota System targets those aged 15 to 34. The Ministry of SMEs and Startups mixes support for youth entrepreneurship, sometimes extending eligibility up to age 39. While the Framework Act on Youth defines youth as those between 19 and 34, most metropolitan local governments across the country already recognize youth up to age 39. Before regional integration, Gangwon and Jeonnam provinces defined youth up to 45, and some basic local governments extend it even further to age 49. As a result, the same person may not be considered a youth by the central government but could be classified as such by a local authority.

Youth policy is not a welfare policy but a growth policy. Delays in youth employment push marriage and childbirth to later ages, which in turn leads to a declining workforce and slower economic growth. This year, the 48 central government ministries and agencies have a total of 389 youth-related projects, with a combined budget reaching 29.9 trillion won. The government plans to establish a Future Response Fund, using up to 100 trillion won in additional tax revenue expected from the semiconductor sector by next year, to finance three major mega-projects and address youth issues.

However, the definition of "youth," which serves as the starting point for many policies, is currently capped at age 34. As the gap between reality and policy widens, the effectiveness of these measures diminishes. While the current youth population exceeds 10 million, it is projected to fall below that figure in five years and decrease by more than half, to 4.82 million, by 2060. The government has acknowledged this trend. The Office for Government Policy Coordination has initiated a research project to evaluate whether the existing 19-to-34 age standard under the Framework Act on Youth needs to be revised in line with social realities; options under consideration include maintaining the current range, raising the upper age limit, and applying flexible criteria based on policy objectives. The National Assembly Research Service has also suggested that expanding youth status up to age 39 should be positively reviewed.

Simply raising the age threshold for youth is not a panacea. If the cap is increased to 39, around 3.2 million more people would become eligible for the Youth Support Jeonse Loan, requiring an additional budget of more than 6.6 trillion won. This could weaken support for those in their twenties who are just entering society. The issue is also linked to debates on extending the legal retirement age and raising the official definition of elderly. The critical question is not where to set the upper boundary for youth, but how to re-define youth as a policy target. Rather than focusing on "what more can be given to youth," the government should prioritize improving the structural conditions—such as the labor market, housing, education, and entrepreneurship—so that young people can compete and grow on a level playing field with older generations. Lee Kyungho, Head of Economics Department

This content was produced with the assistance of AI translation services.