The government will invest a total of 43.3 trillion won next year across various growth stages for young people, including employment and startups, education, housing and assets, and daily life and culture.

The initiative is designed to provide each youth with up to 140 million won by age 18 and approximately 200 million won by age 34, spanning from birth and child-rearing to education, job hunting, asset accumulation, housing, and marriage.

The government held the "Youth Budget Unboxing 2027" event today (the 28th) at the Chungmu Room of the presidential office, presided over by President Lee Jae-myung, and announced the joint ministries' "Comprehensive Investment Promotion Strategy by Youth Growth Stage."

Framing youth policy as "South Korea's investment in the potential of youth," the government plans to expand comprehensive investments by growth stage by 53.5 percent, increasing from 28.2 trillion won this year to 43.3 trillion won next year.

Through support tailored to each stage—ranging from birth and child-rearing to education, job hunting, asset accumulation, housing, and marriage—it is estimated that an individual youth born to parents with a median income of 100 percent, living in a regional preferential area and being the first child, will receive up to 140.57 million won by age 18 and up to approximately 195.82 million won by age 34.

First, the government will restore the upward mobility ladder for youth from their entry into the job market to career management and settlement.

To this end, it will expand opportunities for university students to participate in on-site internships and establish the "First Career Project," through which the government and companies jointly cover internship support fees to assist 60,000 individuals.

Small and medium-sized enterprises (SMEs) that hire youths who have completed government capacity-building programs will receive 7.2 million won per year in hiring subsidies.

In the startup sector, the government will introduce the "Youth Startup Package," which selects technology-based youth startup companies with high growth potential and supports their commercialization.

It plans to expand support for "Startup for Everyone," an open startup program accessible to any youth with an idea, and establish startup centers at each of the four science and technology institutes to foster over 100,000 youth entrepreneurs by 2030.

To narrow the starting line gap, the government will support joint subscriptions to artificial intelligence (AI) for university students.

While establishing full scholarships for regional national universities, it will also expand regional talent scholarship support for students at regional private universities from 4,000 to 10,000 individuals.

On the housing front, income requirements for eligibility for jeonse deposit return guarantee insurance premiums and the Youth Housing Dream Savings account will be expanded compared to the existing annual limit of 50 million won.

The eligibility criteria for youth monthly rent support will be raised from 60 percent or less of the median income to 100 percent to expand the pool of beneficiaries.

In the asset sector, the government will introduce the "Our Child Independence Fund," co-accumulated by the government and parents from birth until age 18.

For youths preparing for employment or startups, the government will introduce a "Youth Opportunity Fund" of up to 20 million won, which exempts interest until employment or business launch, after which repayments can be made at an annual rate of 2 to 5 percent.

To help young people build lump-sum savings, all youths will be included as eligible subscribers to the Youth Future Savings account, and government matching contributions will be significantly expanded.

Contribution benefits for preferential tracks targeting small and medium-sized enterprises and small business owners will also increase.

The government contribution rate will be raised from 12 percent of the individual's monthly deposit to 15 percent, and a new "Regional SME Preferential Track" will be established to provide a contribution equivalent to 25 percent of the individual's deposit.

The expanded government contribution benefits are planned to be applied retroactively to existing subscribers.

Additionally, youths will be able to deposit 500,000 won monthly for three years, totaling 18 million won, and upon maturity, lump-sum transfer it into a productive finance (youth-type) Comprehensive Account Management System (ISA).

Customized work experience will be provided to 3,000 job-discouraged and isolated or reclusive youths to support their self-reliance.

Furthermore, a recovery program accessible near their living areas will be provided for 6,000 isolated youths.

In the marriage, childbirth, and adoption tax credit sector, which has faced criticism for regressivity, cash-based low birth rate measures will be integrated.

The government will pay a one-time "marriage support fund" of 1 million won to couples who have completed their marriage registration.

A "child-welcoming support fund" totaling 10 million to 20 million won, paid in four installments annually, will be established next July.

Expanding support by two to three times compared to the existing child allowance, the "basic child allowance" will be introduced next July, providing up to 600,000 won per month for ages 0 to 1 and up to 300,000 won per month for ages 2 to 12.

The government also plans to establish a future response fund financed primarily by additional tax revenues to support youth growth stages such as employment, startups, housing, and assets, while also formulating and announcing a "mid-to-long-term development strategy" within the year to prepare for structural changes difficult to address through short-term measures alone.

(Photo: Yonhap News)