[2027 Budget Proposal] Labor Ministry Allocates 38.9 Trillion Won...Up to 18 Million Won Support for First Jobs in Non-Metropolitan Areas

Job Seeking Allowance Raised from 600,000 to 650,000 Won per Month
Support Expanded for 160,000 Young Job Seekers

The Ministry of Employment and Labor has set its budget for next year at 39 trillion won. The budget will be intensively allocated to supporting young people from their first employment to career development and job retention, as well as to responding to the changes in industries and jobs driven by artificial intelligence (AI).

The Ministry announced on September 1 that the 2027 budget proposal is set at 38.9537 trillion won, a 3.4% increase compared to this year. Among the total budget, fund expenditures amount to 34.3128 trillion won, an increase of 3.3025 trillion won (10.6%) over this year. In contrast, the general account is reduced to 4.332 trillion won, down 1.5762 trillion won (26.7%), and the special account is decreased to 308.9 billion won, down 448.7 billion won (59.2%).

First, the youth support system will be significantly overhauled to adapt to the labor market changes caused by the major transition to AI. A new “First Employment Support Program for Youth” will be established to support 160,000 young people, with a budget of 379.3 billion won. Young people with no previous work experience will be provided with career exploration, job experience and training links, mock interviews, and other employment support services. The job search promotion allowance will also be raised from 600,000 won to 650,000 won per month.

Support for youth career development will also be expanded. The “K-New Deal Academy,” a job training program led by large companies, will invest 489.5 billion won to support 50,000 participants. A new program called “Youth First AI Job Experience Support,” with a budget of 14.5 billion won, will also be introduced to help companies hire young people with AI skills and provide them with hands-on experience through AI transition projects.

Minister of Employment and Labor Kim Younghoon is attending the plenary session of the National Assembly's Climate, Energy, Environment and Labor Committee on the 12th and reviewing documents. 2026.8.12 Photo by Hyunmin Kim

Launch of Youth Playground...Support Continues After Employment

A new initiative, “Youth Playground,” will be established to provide support even after employment. The program will operate five offline hubs and offer online mentoring and community services, with a budget of 20.1 billion won. The “Youth Job Leap Support Fund” will expand the number of beneficiaries from 105,000 to 130,000, and for those employed in non-metropolitan priority areas, the maximum support per person over two years will increase from 7.2 million won to 18 million won.

Investment in vocational training focused on AI and high-tech industries will also increase. The budget for the “K-Digital Training” program will rise by 87.6 billion won (16.8%) from this year’s 521.3 billion won to 608.9 billion won next year. The number of beneficiaries in AI training courses will double from 10,000 to 20,000. Additional special training allowances will be offered in non-metropolitan and depopulated areas. Furthermore, the budget to build educational and training testbeds for physical AI workforce development will increase by 14 billion won, from 10 billion won this year to 24 billion won next year, establishing related training infrastructures in eight locations.

The government is also investing in strengthening the social safety net. The “Durunuri Project,” which supports social insurance premiums for small workplaces, will see its budget set at 714 billion won next year, expanding support from 1.08 million to around 1.8 million people. In addition to employment insurance and the National Pension Service, its coverage will broaden to include industrial accident and health insurance premiums, and it will newly support low-wage workers and providers of labor in workplaces with fewer than 10 employees.

The KB Good Job Employment Expo was held on the 27th at COEX in Gangnam-gu, Seoul. Many job seekers visiting the expo are checking the job posting board. April 27, 2026 Photo by Dongju Yoon

Expansion of Industrial Accident Insurance Benefits...Introduction of Advance Benefit System

In the area of accident prevention and compensation, 176.8 billion won will be allocated to the “Safe Workplace Creation Support” initiative, representing an increase of 16.2 billion won (10.1%) from this year. A new targeted support program for businesses vulnerable to fire and explosion accidents will be launched with a budget of 40.1 billion won, aiming to improve risk factors at 2,400 locations. Industrial accident insurance benefits will increase from 8.1463 trillion won this year to 8.6246 trillion won next year, a rise of 478.3 billion won (5.9%). The advance payment system for industrial accident insurance benefits will be introduced to further strengthen the compensation system for industrial accident victims.

Compensation paid to protect workers with unpaid wages will also increase by 30.5 billion won (4.1%), from 746.1 billion won to 776.6 billion won. The “Work-Life Balance Job Incentive,” aimed at reducing long working hours, will rise by 25.5 billion won (43.7%) from 58.4 billion won to 83.9 billion won.

Support for work-family balance will also be enhanced. The maternity and childcare support budget will increase by 198.2 billion won (4.9%), from 4.0728 trillion won this year to 4.271 trillion won next year. A total of 3.5016 trillion won will be allocated to parental leave benefits, and new childcare allowances will be established for labor service providers and others not covered by employment insurance.

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