The South Korean government plans to expand its youth employment budget to 3.3 trillion won next year, supporting young people throughout their employment journey, from gaining practical experience to securing their first job and achieving long-term employment. A new initiative will also provide wage and career development support for young individuals engaged in artificial intelligence (AI) transition work for up to two years.
On September 30, the Ministry of Employment and Labor held the second special committee meeting on youth employment promotion for 2026, chaired by Minister Kim Young-hoon, at the Royal Hotel in Seoul. The meeting discussed the direction of youth employment policies for 2027, key plans, and the status of public institutions' compliance with youth employment obligations.
According to the government proposal, the youth employment budget for next year will increase by approximately 700 billion won from this year's 2.6 trillion won. Key allocations include 489.5 billion won for the K-New Deal Academy, 379.3 billion won for the First Job Support Program, and 20.1 billion won for the Youth Playground.
The policy will focus on three main areas: enhancing practical skills and experience, supporting the transition to first jobs, and facilitating growth into better employment opportunities. The K-New Deal Academy will strengthen vocational training and work experience by having large companies design training programs. A new 'Youth Playground' will connect skilled young people with mentoring, community support, and job demand from relevant government departments.
Support for first-time job seekers will also be expanded. The scope of the Youth Employment Jump Incentive will be broadened to include regional large companies, and the number of beneficiaries will increase. A new 'First Job Career Support Program' will provide wage and career development assistance for young people working in AI transition roles for up to two years.
To facilitate movement to better jobs after employment, support for long-term retention and career management will be enhanced. A new subsidy will be established for young people employed in small and medium-sized enterprises in the metropolitan area, and retention incentives for local youth will be increased to a maximum of 18 million won. Plans are also in place to expand the 'Integrated Career Certification Service' to recognize experience regardless of employment type, including freelancers.
The committee also reviewed the compliance status of public institutions regarding youth employment obligations. In the first half of this year, public institutions hired 12,592 new employees, an increase of about 2,000 compared to the same period last year.
The government is closely monitoring the hiring status of institutions that have repeatedly failed to meet youth employment obligations, as well as their future compliance plans.
Minister Kim Young-hoon stated, "The first career for young people is the most certain investment for sustainable growth in our society. The government and society must provide a solid ladder for young people to challenge themselves without fear of failure."
* This article has been translated by AI.
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