"Turning Away from SMEs Isn't About High Expectations, But Weak Trust in the Ladder" [Youth at the Crossroads of Employment]

KEF Holds "Youth Employment Policy Seminar Desired by Youth"

Youth Employment Policy Should Aim to Create a Growth Ladder

Seniority-Based Wage System and Dual Labor Market Structure Also to Blame

"The reason young people turn away from small and medium-sized enterprises is not because they have overly high expectations, but rather due to a lack of growth opportunities and weak trust in the ladder that could help them move up to mid-sized or large companies."

Shinchanghoon, Youth Representative (President of Kyung Hee University Student Council), attended the "Youth Employment Policy Seminar Desired by Youth" on the 24th at the FKI Tower Conference Center and presented on youth employment policies that young people want. The Asia Business Daily

On August 24, Changhun Shin, President of the Kyung Hee University Student Council, delivered the first presentation at the "Youth Employment Policy Seminar Desired by Youth" hosted by the Korea Economic Cooperation Federation. He stated, "We need to ensure that young people feel they can grow step by step by gaining skills and experience starting with small and medium-sized companies." He emphasized that what young people need is not simply 'a job,' but jobs where they can start, grow, and advance. "Youth policy needs to adopt the language of 'growth,' not only 'welfare'," he said. He went on to state the need for career records based on work and performance, expansion of open recruitment and evaluation based on actual abilities rather than just the size of the company, and support for development and mobility while employed. Finally, he added, "The benchmark for policy should shift from 'how many got hired' to 'what skills were accumulated and whether better opportunities became accessible.'" He stressed, "What young people need is not 'more credentials' but 'better growth paths,'" and suggested that "the ultimate goal of youth employment policy should be a society where young people can develop and move up through work, without having to accumulate excessive credentials."

Jaeheon Byun, Director of the Future Thinking Job Center, who gave the second presentation, argued that issues of youth employment should not be explained by a lack of individual 'passion' or 'perseverance,' but rather approached as problems arising from job disparities according to company size and a rigid labor market structure. He pointed out, "When comparing workplaces with 300 or more employees to those with fewer than 300, there is a significant gap in wage levels, but a relatively small difference in working hours." He said, "Blaming young people for only wanting to work at large companies ignores the qualitative differences in jobs, making it difficult to solve youth employment problems." He also cautioned against interpreting the short tenures or resignations of young workers merely as a lack of perseverance. "We need to examine how the seniority-based compensation structure and rigid labor market are impacting opportunities and mobility for youth." He called for the expansion of rational, performance-based compensation systems and for ensuring that young people participate as stakeholders in social dialogue on reforming labor market systems. "There must be a structure in which youth voices are directly reflected at the policy discussion table about youth issues," he emphasized.

On August 19, job seekers are visiting company booths at the 2026 Joint Financial Sector Recruitment Fair held at Dongdaemun Design Plaza in Jung-gu, Seoul. 2026.8.19 Photo by Yonhap News

Lawmakers from both parties agreed that employment policy effectiveness should be enhanced by starting from the voices of youth. Assemblyman Kyungjong Mo, Youth Committee Chair of the Democratic Party of Korea, stated in his congratulatory address, "Youth employment policy must begin with the voices of young people. We need to carefully listen to what young job seekers are struggling with, and revise outdated systems in the labor market to create policies that offer real help." He continued, "New jobs and better workplaces for young people arise when companies invest and grow." Assemblyman Jaejun Woo, Youth Supreme Councilor of the People Power Party, said, "What we need now is not simply to increase the number of youth jobs, but to find fundamental solutions that enable young people to land their first job, build experience, and grow in a changing industrial and labor market." He emphasized, "We must thoroughly examine how labor market changes, such as extending the retirement age and the AI transition, will affect youth employment, and ensure fair entry opportunities and a clear 'growth ladder' for young people."

Kim Changbum, Vice Chairman of the Korea Economic Cooperation Federation, stated in his opening remarks, "Quality jobs where young people can demonstrate their capabilities are ultimately created when companies invest and grow. We need to break down outdated regulations to encourage active investment by companies, and foster a labor market ecosystem that allows young people to improve their skills and receive fair treatment, so that jobs will improve accordingly." He further pointed out, "A rigid, seniority-based wage system, standardized working hours, and an education system that fails to meet industry needs no longer fit the industrial structure of the AI era. We need to eliminate regulations hindering the spread of new industries and overhaul education and training systems to foster customized talent needed on the ground. The Korea Economic Cooperation Federation will also support efforts so that companies can create more quality jobs and young people can grow together with them," he added.

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