Jeonbuk Research Institute Proposes Policy to Provide 100 Million Won to Jeonbuk-born Youth at Age 20

Plan for Introducing 100 Million Won Long-term Asset-building "Child Hope Fund" Unveiled

Parents and Local Government to Jointly Contribute 20 Million Won for Long-term Investment

Productive Welfare Model to Promote Youth Independence and Local Industry Development

A long-term asset formation policy has been proposed in North Jeolla Province (Jeonbuk), aiming to provide children born in Jeonbuk with assets worth 100 million won upon reaching adulthood at age 20. Its potential implementation is drawing significant attention.

On July 29, the Jeonbuk Research Institute released its Issue Brief (Vol. 347), outlining the introduction of the "Jeonbuk Child Hope Fund." Kim Dongyoung, the senior research fellow in charge of the study, explained that existing policies focused on birth incentives and childcare allowances have limited impact in supporting genuine youth independence. He suggested that a new support structure is needed, one that provides a significant asset at the point when individuals reach adulthood.

Issue Brief No. 347 published by Jeonbuk Research Institute, "1 Billion Won Asset Formation Project for Newborns: Jeonbuk Child Hope Fund." Provided by Jeonbuk Provincial Government.

The plan proposed by the Jeonbuk Research Institute targets all newborns in Jeonbuk from 2027 onwards. Using the 2024 birth figure of approximately 6,400 as a reference, parents and the Jeonbuk Special Self-Governing Province Government would each contribute 10 million won for each child, totaling 20 million won, which would then be invested long-term by a professional asset manager. The goal is to grow this to 100 million won per person over 20 years.

While parents in typical households would contribute 10 million won, the burden for parents in low-income and vulnerable groups would be reduced to 4 million won, thus ensuring asset-building opportunities regardless of economic circumstances.

More than 60 percent of the fund’s capital would be invested in Jeonbuk’s innovative companies in sectors such as secondary batteries, mobility, and agro-bio industries, targeting an average annual return of 8.2 percent.

In the event that the target yield is not met, the plan includes a provision for the Jeonbuk Provincial Government to cover any shortfall. It will also strictly prohibit fund withdrawal before age 20, and, to encourage long-term residency, require reimbursement of the local government’s contribution if the recipient moves away from the region.

Kim highlighted the defining feature of this policy as "regionally-invested asset formation." He emphasized that children’s assets would serve as growth capital for local companies, and the ensuing corporate success would, in turn, be returned as assets to young people—thus creating a virtuous economic cycle. This, he noted, could foster awareness among youth that links their personal futures to local economic development from adolescence onwards.

Additionally, the institute proposed a "Post-100-Million-Incentive" system, in which those who receive 100 million won at age 20 could receive additional subsidies or interest-free loans for purchasing a home or starting a business within Jeonbuk.

Kim Dongyoung, the senior research fellow, stated, "For young people in regions with fewer asset-building opportunities compared to the Seoul metropolitan area, foundational assets can serve as a springboard for independence. The payment of 100 million won at adulthood can be a tangible incentive for youth to settle in their local communities."

Similar "child asset-building" policies are found internationally, where governments support the future assets of children. For instance, since 2005, the United Kingdom has implemented the "Child Trust Fund" system, providing seed money from the government at birth that can be used once recipients become adults.

The Jeonbuk Research Institute anticipates that the "Jeonbuk Child Hope Fund" could develop beyond simple cash handouts into a productive welfare model that simultaneously promotes youth independence and local industrial advancement.

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