Seoul: The labor ministry announced plans to allocate more than 38 trillion won (US$27.7 billion) for the 2027 budget, focusing on enhancing youth employment support.

According to Yonhap News Agency, the Cabinet approved a budget of 38.95 trillion won for the labor ministry in 2027, marking a 3.4 percent increase from the current year as part of the government's 2027 budget proposal. The ministry aims to allocate a total of 3.3 trillion won towards youth employment-related programs, reflecting an increase of 700 billion won compared to the current year's budget.

The ministry's initiative includes raising the monthly job search allowance under its youth employment support program to 650,000 won, up from the current 600,000 won. This initiative comes in response to the challenging job market for young individuals, with the employment rate for those aged 15 to 29 declining by 1.6 percentage points to 44.2 percent in July, marking the 27th consecutive month of on-year decline.

Additionally, the ministry plans to allocate 40.1 billion won to improve safety at 2,400 businesses susceptible to fires or explosions. This decision follows a tragic incident at Hanwha Aerospace's plant in June, where an explosion resulted in the loss of five lives.