Youth Budget to Jump from 28.2 Trillion Won to 43.3 Trillion Won Next Year... Up to 200 Million Won Per Person for Jobs, Housing, and Education

Introduction of "Our Child Independence Fund" with Maximum Payout of 100 Million Won at Maturity

Yonhap News Agency

The government will drastically increase next year's youth-related budget to 43.3 trillion won, up 53% from this year. The plan is to provide benefits of up to 140 million won per person until the age of 18, and about 200 million won until the age of 34, covering the entire life cycle from birth and childrearing to education, job search, asset accumulation, housing, and marriage.

On August 28, the Ministry of Planning and Budget held the "Youth Budget Unboxing 2027" event at the Chungmu Room of the presidential office, led by President Lee Jaemyung, and announced a "Comprehensive Investment Promotion Strategy by Youth Development Stage" together with relevant ministries.

The government will expand the comprehensive investment by youth development stage from 28.2 trillion won this year to 43.3 trillion won next year, an increase of 53.5%. If parents have an income at 100% of the median and live in a preferential regional area, and the youth is their first child, the individual can receive up to 140.57 million won by age 18 and up to about 195.82 million won by age 34.

In the area of jobs, the government will introduce a new "First Career Project," in which the government and companies jointly fund internship support, aiming to support 60,000 young people. Small and medium-sized enterprises (SMEs) and mid-sized companies that hire young people who have completed government competency programs will receive hiring incentives of 7.2 million won per year. In the startup sector, the "Youth Startup Package" will be implemented to select technology-based youth startups with high growth potential and support their commercialization.

The government will also expand support for Open Startup, a program in which any youth with an idea can participate, and will establish startup centers at each of the four major science and technology institutes to nurture more than 100,000 young entrepreneurs by 2030.

Additionally, new full scholarships will be established at regional national universities, and the number of recipients for the regional talent scholarship for students at regional private universities will increase from 4,000 to 10,000.

For housing, the eligibility criteria for the Jeonse Deposit Return Guarantee and for the Youth Housing Dream Savings Account will be expanded beyond the current annual income limit of 50 million won. The eligibility for youth monthly rent support will also be raised from 60% or less of the median income to 100%, thereby expanding the coverage.

Yonhap News Agency

In the asset sector, the government will introduce the "Our Child Independence Fund," a joint savings program by the government and parents from birth to age 18. The plan is for beneficiaries to receive between 60 million and 100 million won at maturity. The government will match savings at different rates depending on income brackets. For children from low-income households earning less than 50% of the median income, the government will contribute 1.2 million won per year regardless of parental contributions.

For young people preparing for employment or entrepreneurship, the government will introduce the Youth Opportunity Fund, which will provide loans of up to 20 million won with interest deferred until employment or business launch, and with a repayment rate of 2–5% per year thereafter.

To help the youth build up financial assets, the government will lower the threshold for joining the Youth Future Savings scheme and significantly increase government contributions. The existing eligibility criteria of "households with annual earned income of 75 million won or less and at or below 200% of median income" will be eliminated, making all young people eligible to participate. As a result, the number of eligible beneficiaries will increase from about 5.8 million to about 9.6 million.

The preferential government contribution for SMEs and small business owners will also increase. The government contribution, previously set at 12% of personal monthly deposits, will be raised to 15%. The new “Regional SME Preferential Track” will offer government matching at 25% of personal monthly contributions.

Furthermore, the government will allow young people to save 500,000 won per month for three years (a total of 18 million won), and to make a lump-sum deposit into a productive finance Individual Savings Account (ISA) upon maturity.

The government will also support the first national pension premium for young people, amounting to 42,000 won. For 3,000 young people who are socially withdrawn or have given up on job-seeking, the government will provide tailored work experience to aid independence.

The government will also provide a one-off “Marriage Support Grant” of 1 million won to couples upon completion of marriage registration. In addition, a new “Child Birth Support Grant,” ranging from 10 million to 20 million won, will be launched in July next year, with payments made in four installments per year. The new “Child Basic Allowance,” which will be introduced in July next year, will provide up to 600,000 won per month for children aged 0–1 and up to 300,000 won per month for children aged 2–12, two to three times more than the existing child benefit.

The government will also create a Future Response Fund, financed primarily through additional tax revenue, to support growth stages such as jobs, startups, housing, and assets for young people. In parallel, the government plans to establish and announce a "Medium- and Long-Term Development Strategy" within the year to address structural changes that cannot be managed with only short-term measures.

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