Government unveils youth employment plan, fast-tracks W3tr in industrial investment

The government is preparing a youth job recovery plan and sector-specific employment measures to address a persistent hiring slump among young workers and in the manufacturing and construction industries. At the same time, it will fast-track roughly 3 trillion won ($2.12 billion) in corporate investment stalled by regulatory and permitting hurdles in advanced industries — including semiconductors, secondary batteries and biotech — with the aim of creating quality jobs.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol chaired a combined Emergency Economic Headquarters meeting, economic affairs ministerial meeting and livelihood prices special management TF at Government Complex Seoul on Thursday. The session covered the government's response to the war in the Middle East, measures to stabilize prices and supply of agricultural, livestock and fishery products amid the heatwave and drought, field-centered corporate investment and innovation support, and plans for the second round of the "Everyone's Startup Project."

Koo said the number of employed workers rose by 108,000 year-on-year last month — the first double-digit increase in four months — but that hiring weakness continues to be concentrated among young people and in manufacturing and construction. He added that the prolonged war in the Middle East, the heatwave and drought in some regions are placing additional pressure on both employment and prices.

In response, the government said it will swiftly draw up and announce a youth job recovery plan, and will release tailored measures for sectors with weak hiring such as manufacturing and construction. Koo said the government aims to build a virtuous cycle in which promoting corporate investment and innovation expands growth engines while generating quality jobs that young people want.

The government will also push regulatory reforms to stimulate corporate investment. At the Gumi and Pohang national industrial complexes, where only secondary battery manufacturers are currently permitted to operate, secondary battery resource recycling businesses will also be allowed to move in, supporting an estimated 100 billion won in new investment.

At large industrial complexes such as the Yongin semiconductor cluster, factory expansion permits will be separated from existing building permits so companies can obtain approval independently. The government plans to use this change to enable the swift execution of approximately 2.5 trillion won in investment.

At the Ochang Science Industrial Complex, the government will ease regulations to allow biotech companies to expand their factories using adjacent sites, which it expects will unlock roughly 530 billion won in new investment. Combined, the three field-pending projects represent a total investment of approximately 3.13 trillion won.

Institutional reforms to improve investment conditions for advanced and emerging industries will proceed in parallel. Industrial robot safety standards, built around conventional fixed robots, will be revised to promote the use of new robot types — including collaborative robots and mobile robots — on the factory floor.

Six advanced strategic industries — semiconductors, secondary batteries, displays, biotech, robotics and defense — will be allowed to adopt "performance-based design," a framework that uses computer simulation to ensure fire safety while applying alternatives suited to each industry's characteristics. The ceiling on designated restricted-industry planning zones, which allow all types of businesses to operate within an industrial complex and are needed for emerging industries and RE100 initiatives, will be raised from the current 30 percent to 50 percent. The government also plans to prepare a second round of investment and innovation support measures centered on ultra-innovation economy flagship projects and green industries.

The government is also moving to address price instability in agricultural, livestock and fishery products caused by the heatwave and drought. A special heatwave and drought management period has been in operation since Friday, with crop growth and damage monitored on an ongoing basis.

The government will supply pesticides and nutrients for cabbage, radish, fruit trees and fruiting vegetables at a 2.2 billion won discount, and will invest 360 million won in the supply of shade-coating agents. The budget for equipment to protect fish farms from high-water-temperature damage — including liquid oxygen supply devices and shade nets — has been expanded from 5.8 billion won last year to 9.4 billion won this year. Stockpiles of cabbage, radish and other produce will be released in line with supply conditions, and discounts of up to 50 percent will be offered on major agricultural, livestock and fishery products through the Chuseok holiday season.

The government will also formally launch the second phase of the "Everyone's Startup Project." Applications will be announced this month, with 10,000 participants to be selected in early October before regional auditions and a national competition to determine the final winner. Of the 10,000 initial mentoring participants, 2,200 will advance to regional auditions and 400 to the national competition.

Mentoring will be provided through 170 specialized incubators through November, with dedicated leagues for global, university, youth and social venture participants. The government plans to tighten security to prevent idea leaks and will introduce multi-dimensional evaluation and AI verification to improve the fairness of the selection process.