Seoul: South Korea on Friday unveiled part of its 2027 budget plan aimed at supporting young people, pledging to allocate 43.3 trillion won (US$31.4 billion) for tailored fiscal support at different stages of their lives. The budget proposal, unveiled by the Ministry of Planning and Budget during the "2027 Youth Budget Unboxing" event at the presidential office earlier in the day, marks a 53.5 percent increase from the 28.2 trillion won earmarked for related projects this year.
According to Yonhap News Agency, the budget ministry highlighted current issues young people face, such as delayed job market entry and challenges in asset building, due to changes in the industrial structure. "Recently, young people's entry into the job market has been delayed due to changes in the industrial structure. They are also facing other challenges, including growing difficulties in building assets," the ministry noted in its release.
The ministry emphasized that existing youth policies have not fully addressed these changes, and young people have expressed difficulties in identifying available support in a timely manner, as policies have largely been implemented through individual programs. The 2027 budget plan reflects a shift in the government's approach, viewing young people not merely as a group in need of assistance but as a key investment priority for strengthening the country's future capabilities.
Under this budget plan, a first child born in 2027 in an area eligible for preferential regional support could receive benefits and savings worth up to 140.57 million won by age 18, as per an illustrative scenario provided by the ministry. This amount could increase to 195.82 million won by age 34, with full tuition support available at eligible national universities outside the Seoul metropolitan area.
The government plans to provide 15 million won in subsidies at birth and a total of 14.4 million won in monthly childcare subsidies through the age of 1 for children raised at home. From ages 2 to 12, children could receive a total of 39.6 million won in subsidies. Additionally, children enrolled in the government's new savings program could save 71.5 million won through contributions from both parents and the government from birth through age 18.
For individuals aged 19 to 34, the plan offers various forms of financial assistance, including college tuition support, job training programs, and a 1 million-won marriage grant. The budget also includes measures to reduce disparities in education, housing, and asset building access.
Programs are proposed to support university students' subscriptions to AI services, aiding them in building AI-related skills for their studies, job searches, and workplaces. To attract talented students to areas outside Seoul, the government will provide full scholarships to students at national universities in these regions.
South Korea also plans to supply larger public housing units in sought-after locations near public transportation hubs, alongside introducing financial packages offering low-interest loans to unemployed young people seeking jobs or starting businesses.