First Local Government in Korea to Support Student Loan Principal Repayment
Expanding Work Experience, Cultural Spaces, and Recovery Support

Changwon Special City in South Gyeongsang Province has decided to strengthen the foundation for young people to settle in the city by supporting their economic independence, entry into society, and cultural life, in order to combat declining population and maintain urban vitality.


This decision is driven by the fact that Changwon, as the manufacturing center of South Korea, faces the challenge of linking its industrial competitiveness to youth job creation and growth opportunities. Creating an environment where young people can build their careers and sustain a stable life locally is essential.


In recognition of Youth Week, the city highlights key policies that support youth independence, daily life, and local settlement in Changwon.


◆ The First Local Government in Korea to Support the Repayment of Student Loan "Principal" for Youth

The city offers support so that young people can reduce their debt burden, build assets for the future, and establish a stable life base in the region.

Youth Happiness Plus Account Business Agreement. <br/>Photo by Changwon City

Youth Happiness Plus Account Business Agreement.
Photo by Changwon City

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Among the main pledges of the ninth popularly elected administration, the student loan repayment support program is the first initiative of its kind implemented by a local government in Korea, where the city directly repays the "principal" of the youth’s student loans. The city aims to launch the project in 2027 and plans to select 100 youth annually to receive up to KRW 2 million per person. Eligible candidates are young people who have graduated from a domestic university, have been living in Changwon while working at a local small or medium-sized business for at least one year, and still have a student loan balance with the Korea Student Aid Foundation.


The program will operate by confirming principal repayments through the Korea Student Aid Foundation, and then reducing the principal in the loan account by the actual repaid amount. The implementation plan was established in August, and procedures such as requesting approval for the introduction of a new social security system are in progress.


The youth savings program, which helps low-income working youth build substantial savings, is also being reorganized as the "Youth Happiness Plus Savings Account." For this, the city signed a financial business agreement with BNK Kyongnam Bank in August. If a young participant saves KRW 150,000 monthly, the city matches the same amount, and upon meeting the eligibility criteria, participants receive KRW 7.2 million after two years, or KRW 10.8 million after three years, plus interest. The revised plan calls for recruiting 400 new participants annually and expanding interest benefit, with new registrations scheduled for October this year.


◆ Youth Culture to Learn and Enjoy Nearby

Enjoying culture and sharing interests close to home allows young people to build attachment to the region and provides the foundation for continuing their lives there.


This year, the city expanded regional support infrastructure by opening two Youth Vision Centers—one in Jinhae and one in Masan. The Jinhae center, opened in March, specializes in culture, while the Masan center, opened in June, specializes in employment and entrepreneurship. The Jinhae center offers cultural experiences and content planning, and the Masan center provides AI marketing and local branding education, enabling youth to learn and interact in their local areas.


The city also supports creative and cultural activities for youth at Sponge Park and Garosu-gil. The "Baroseuk Class - Weekend Playlist" program offers opportunities to discover new interests and engage with peers through diverse activities including music, art, and reading. The Youth Sports Pass supports leisure activities by providing assistance with sports activities and game admissions for young employees of small and medium-sized enterprises.

Changwon Youth Startup Audition_Group Photo. [Photo by Changwon City]

Changwon Youth Startup Audition_Group Photo. [Photo by Changwon City]

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Taking place from September 14 to 20, the "2026 Changwon Youth Week" is a space for participation and exchange, where youth can share their tastes and perspectives. Under the theme "Youth First in Changwon," various events—including talk concerts, the Garosu-gil Youth Festival, Youth First Run, and Youth Song Festival—will be held in Changwon, Masan, and Jinhae.


As a policy pledge of the ninth popularly elected administration, the city will invest a total of KRW 600 million from 2027 to 2030 to gradually implement the "Garosu-gil Youth Culture Hub Project." Key contents include: ▲ regular operation of youth culture and arts programs (Sponge Day, Sponge School), ▲ regular youth cultural events, ▲ upgrading Sponge Park facilities, ▲ establishing collaborative private hubs with nearby cafes, ▲ hosting youth festivals, ▲ launching Youth Art Week, and more. Through this project, the city intends to expand the region's cultural ecosystem to Garosu-gil, providing an environment where youth creativity and交流 can continuously thrive.


◆ Supporting Social Participation through Work Experience and Entrepreneurship Education

In order for young people's learning and ideas to translate into employment and entrepreneurship, they need opportunities to gain hands-on experience and test their potential in the field.


The Youth Work Experience Support Program connects local businesses and organizations with unemployed young people, helping them build initial careers and enhance their employability skills. This year, the program supports 70 participants, providing companies with wage and mentor stipends, while offering transportation costs and work-retention incentives to youths who meet the requirements.


The city is broadening the scope of job experience by offering professional sports internships in partnership with NC Dinos and Gyeongnam FC. The city also provides job counseling in cooperation with the University Job Plus Center and operates a public sector part-time work program for university students during vacations, supporting up to 230 students a year to facilitate youth entry into society.


In the entrepreneurship field, 24 youth (20 teams) participated in branding, business plan development, and AI marketing education. In June, five outstanding teams were selected at the startup audition and received intensive mentoring to further develop their business plans.


◆ Helping Isolated Youth Recover and Take on New Challenges

The city respects the unique challenges and recovery pace of each individual and provides step-by-step support to enable them to regain daily life and engage in society.


The "One Step Out to the World, ON:Cheong" program to support isolated and reclusive youth begins with outreach and counseling, and then connects participants to daily life recovery and independence support. In August, 11 partnering organizations—including Masan General Social Welfare Center—established a cooperative system, and the online "Mind Counseling Center" was launched to allow young people who are hesitant about in-person counseling to seek help.


The city will continue to closely monitor the progress and outcomes of youth support policies to increase their effectiveness. Additionally, it plans to boost jobs linked with local industries and broaden opportunities for job skill development, so that young people can build stable careers and settle in Changwon.


Kang Kiyoon, Mayor of Changwon Special City, stated, "Young people must be able to do work they want, lessen their living burdens, and enjoy culture so they can envision a future in Changwon. We will ensure that the promised policies, like the student loan repayment support, are made specific and that the voices from the field are reflected to help young people feel real change in their lives."



Changwon City must proactively provide opportunities and administrative support to make everyday life more attractive and ensure that young people have every reason to stay, not leave, the city.


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

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