The government will expand next year's "youth budget" by more than 50% from this year to 43.3 trillion won. The core is to significantly strengthen life-cycle support from birth through education, employment, asset building, housing and marriage, providing benefits up to 195.82 million won through age 34.
According to Cheong Wa Dae, on the 28th it chaired the "Youth Budget Unboxing 2027" event and unveiled the "youth support programs" to be included in next year's budget bill via live broadcast. Ahead of the government's announcement of next year's budget bill, the aim was to introduce the budget and key programs designed for people in their 20s and 30s, and to hear from the youth.
At the event, the president said, "When I was growing up, sayings like 'buy hardship when you're young' and 'failure is the mother of success' were accepted as truths, but these days people may think that 'failure is the shortcut to the bottom,'" adding, "There is anxiety that once you fall, you can never get back up and you will live your whole life in debt."
The president said the young generation has become "a truly vulnerable generation," adding, "Before telling young people to try harder, it is the state's responsibility to build a society where they can get economic opportunities commensurate with their efforts." The president also said, "We need to grow the pie through economic growth to increase opportunities, and it would be effective to consider how to share those opportunities fairly within that growth," adding, "I will put all my effort into that."
◇ Savings income requirement scrapped… movie fees covered and "exercise points" paid through age 34
According to Cheong Wa Dae, next year's budget bill includes 1.7 trillion won for system overhauls such as abolishing the income requirement for joining the Youth Future Savings; 465 billion won for the "first career project" for university students; and 901.2 billion won to expand the scope and amount of the youth job leap incentives. In particular, the beneficiaries of Sturdy Money, which gives points usable like vouchers when you exercise at least 30 minutes a day, and Culture Pass, which covers expenses for performances, exhibitions, movies, and book purchases, will be expanded to those up to age 34.
In addition, for 60,000 university students to build "specs," the government and corporations will split a monthly 2.3 million won internship support payment, and young people employed by small and mid-sized companies will receive up to 9 million won a year in support. For young people in the early stages of startups, up to 80% of insurance premiums will be subsidized. The intent is to provide a foundation for a second chance even if a business closes.
Additionally, full scholarships will be newly established at 30 regional national universities excluding medical and pharmaceutical tracks, and the income threshold for youth monthly rent support will be eased from "60% of the standard median income to 100%." For young people at or below the near-poor level, the monthly rent support period will double to 48 months. In finance, the income threshold for the general type of Youth Future Savings will be abolished, the government contribution rate for the preferential type will be raised from 12% to 15%, and for young people who remain employed at regional small and mid-sized companies, the government contribution rate will be applied up to 25%. For young people with total annual salary of 75 million won or less who join an Individual Savings Account (ISA) for productive finance, 10% of contributions will be deducted from taxable income.
◇ Cheong Wa Dae unusually pre-releases budget for a specific age group… seeking a rebound in approval ratings
While past governments often promoted specific policies after the fact, this is the first time that Cheong Wa Dae has taken the lead in announcing a specific budget and programs before the budget bill is released. This move by Cheong Wa Dae is connected to the situation in which the president's job approval rating hit the 30% range for the first time since taking office and support is eroding faster among people in their 20s and 30s.
In a survey by pollster JoWon C&I commissioned by Straight News on the 26th and conducted on 2,001 men and women nationwide ages 18 and older from the 22nd to the 24th, the positive assessment of the president's job performance was tallied at 38.9%, down 4.0 percentage points from the previous survey. The negative assessment was 57.9%, up 3.8 percentage points from the previous survey; in particular, the negative view that "the president is not doing well" was 62.9% among those in their 20s and 65.8% among those in their 30s.
In a Korea Gallup poll released on the 28th, the president's approval rating also hit a survey low of 42%. The poll was conducted on 1,001 people ages 18 and older from the 25th to the 27th. By age group, the positive assessment of job performance was 31% among those 18 to 29 and 35% among those in their 30s. In both the 20s and 30s cohorts, the negative rating came to the 60% range.
Ruling camp figures cite real estate policies such as loan regulations, rapid shifts in the stock market, and the defection of women in their 20s and 30s due to the abolition of supplementary investigative powers as reasons for the plunge in approval ratings. The ruling Democratic Party of Korea is also weighing measures to win over young voters, including "the Democratic Party for young people" as one of its four key tasks. A source in the ruling camp said, "From Cheong Wa Dae to the party, everyone is saying 'youth, youth,' and Cheong Wa Dae unusually disclosed the budget for a specific age group," while adding, "Middle-aged and older people are affected on real estate, and young people are affected on stocks and supplementary investigative powers, so a rebound momentum is needed."
For details of the opinion polls cited in this article, refer to the website of the National Election Survey Deliberation Commission.