Government to invest W43.3tr in youth next year, offering up to W195.82m per person by age 34

The government plans to increase fiscal investment in youth policy by 53.5 percent — from 28.2 trillion won ($20.4 billion) this year to 43.3 trillion won next year. The expanded support will cover every stage of a young person's life, from birth and childcare through education, job-seeking, asset building, housing and marriage, with a single individual eligible to receive up to a cumulative 195.82 million won in benefits by age 34.

President Lee Jae Myung presided over an event called "Youth Budget Unboxing 2027" at Cheong Wa Dae on Friday, where related ministries jointly unveiled the "Comprehensive Investment Strategy for Youth by Growth Stage."

The strategy reorganizes youth policy around three pillars: restoring a "growth mobility ladder" through employment and entrepreneurship support; narrowing the gap at the starting line through education, housing and asset programs; and improving quality of life through lifestyle and cultural initiatives. The shift reflects structural changes in the labor market — young people are entering their first jobs later and wealth gaps are widening — and aims to replace the existing patchwork of individual programs with a coherent, stage-by-stage support framework.

The government will expand support to help young people enter the workforce sooner. A new "First Career Project" will place 60,000 university students in hands-on work experience at companies and regional sites, with the government and participating firms splitting the cost equally to provide each participant with a monthly training stipend of 2.3 million won. The K-New Deal Academy will be scaled up from 10,000 to 50,000 participants, and the K-Digital Training AI program from 10,000 to 20,000.

Small and midsize companies that hire graduates of government competency programs will receive a hiring incentive of 7.2 million won per year, while regional large corporations will receive 3.6 million won annually on a pilot basis. The job-retention subsidy for youth employed at small and midsize firms will rise from a maximum of 3.6 million won to 9 million won per year.

The government will also introduce a tentatively named "Career Bank" that consolidates freelance and platform work history alongside qualifications and training records into a recognized career profile. The government aims to create 200,000 youth jobs across the public and private sectors by 2030.

Startup support will be restructured to follow a preparation-growth-restart continuum. The "Everyone's Startup" selection pool will grow from 15,000 to 20,000, and the first-stage commercialization grant will rise from 2 million won to 5 million won per person. The youth-exclusive startup fund will double from 200 billion won to 400 billion won. A new startup insurance subsidy will cover 60 to 80 percent of monthly premiums — on a sliding scale by year — for entrepreneurs within five years of founding their business. The government has set a target of nurturing more than 100,000 young entrepreneurs by 2030.

In education, the government will support a university consortium model for shared AI service subscriptions so students can access AI tools at no personal cost, and will launch an "X+AI Transition Curriculum" — combining existing majors and career backgrounds with AI skills — at 40 universities for 20,000 students. Full tuition scholarships, excluding medical and pharmacy programs, will be introduced at 30 regional national universities, and the regional talent scholarship at private universities outside Seoul will be expanded from 4,000 to 10,000 recipients.

In housing and asset policy, the government will expand step-by-step support from rental assistance through homeownership. The income threshold for the youth monthly rent subsidy will rise from 60 percent to 100 percent of the median income, and youth at or below the near-poverty line will see the support period extended from 24 to 48 months. A 17 percent tax credit on monthly rent will apply to youth without a home of their own earning up to 80 million won in total annual wages, and the deductible ceiling will increase from 10 million won to 12 million won per year.

At least 50 percent of newly built universal public rental housing will be allocated to young people. The government will supply public rental units in transit-oriented areas and other locations preferred by youth, and will pursue diverse public sale models — including equity-accumulation and profit-sharing schemes — to help young people with limited savings buy their first home.

Two new products will be introduced: the "Youth Future Home Loan," designed to support first-time homebuyers with monthly repayments comparable to rent, and the "Youth Jeonse-Monthly Rent Combined Guarantee," which covers both jeonse and monthly rent loans under a single guarantee. The existing youth special jeonse loan guarantee will also be expanded in both eligibility and loan limits.

Asset-building support will begin at birth. A new "Our Children's Independence Fund" will allow parents and the government to make joint contributions and investments from birth through age 18, with government matching scaled to household income. Youth who are not yet employed, earn less than 35 million won annually and are preparing to enter the workforce or start a business will be eligible for a one-time "Youth Opportunity Loan" of up to 20 million won; current university and graduate students, including those on leave, are excluded. Interest will be waived during the job-search period, and repayment after employment or business launch will carry a low annual rate of 2 to 5 percent.

The Youth Future Savings account will have its income requirement removed for the standard tier, and the government contribution rate for the premium tier will rise from 12 to 15 percent. Youth earning up to 75 million won in total annual wages who contribute to a productive-finance individual savings account will receive a 10 percent income deduction on their contributions, and the tax credit rate on individual retirement pension contributions will be raised to a preferential 15 percent. The government will also cover one month of first-time national pension premiums.

Support for discouraged and isolated youth will also be expanded. Tailored work-experience programs will be provided to 3,000 vulnerable young people, and the Youth Challenge Growth Support program will grow from 58,000 to 67,000 participants. Some 6,000 isolated or reclusive youth will receive programs near their homes to help them rebuild daily routines, social relationships and community participation.

The government subsidy for the "1,000-Won Breakfast" program will increase from 2,000 won to 3,000 won per meal, and the "Everyone's Card" public transit reimbursement program will be expanded. The Youth Culture Pass — previously a one-time benefit for a limited group of 19- and 20-year-olds — will be extended to all youth aged 19 to 34 on an annual basis, with sports and physical activity added as eligible spending categories.

For youth serving in the military, the government will provide a 100 percent match on contributions of up to 550,000 won per month to the "Soldier's Tomorrow Preparation Savings" account. A new matching program will also be introduced for short-term non-commissioned officers commissioned from 2027 onward, covering contributions of up to 300,000 won per month over 36 months.

Family formation support will be restructured. Couples who register their marriage will receive a one-time 1 million won marriage grant regardless of income. The government will also address the so-called "marriage penalty" — the reduction in housing, loan and asset benefits that occurs when a couple's combined income is assessed — by allowing newlyweds to access jeonse and home-purchase policy loans if at least one spouse meets the standard individual income threshold.

The child allowance, parental benefit and first-meeting voucher will be consolidated into a new "Child Welcome Grant" starting in July 2027. Payments totaling between 10 million won and 20 million won will be made in four installments, varying by birth order and region of residence. A new "Basic Child Allowance," more generous than the existing child allowance, will also be introduced.

The government will overhaul its youth policy delivery system by linking platforms such as "Ontong Cheongnyeon" and "Employment 24" so that AI can analyze each user's age, location, and browsing and application patterns to recommend personalized policies and guide them from search through application. Youth participation will be expanded in the policy and budget design stages, and from 2027 the government will conduct annual satisfaction assessments of youth programs to identify and streamline underperforming or overlapping initiatives. A "Youth Impact Assessment" — evaluating how major national policies affect youth rights and interests — will also be introduced.

A youth-specific account will be established within the Future Response Fund, which draws primarily on additional tax revenues, to concentrate investment in stage-by-stage programs covering employment, asset building, housing stability, marriage and childbirth. The government also plans to finalize a "2045 National Development Strategy" by year's end, incorporating structural reform tasks in education and labor based on input from youth and the broader public.

The 195.82 million won figure represents the total benefits a person could receive from birth through age 34 along a hypothetical life path. The calculation assumes a child born in 2027 as the first child in a household earning 100 percent of the standard median income, in a region eligible for regional preference benefits.

From birth through age 18, the maximum cumulative benefit reaches 140.57 million won — comprising 15 million won from the Child Welcome Grant, 54 million won from the Basic Child Allowance, and 71.57 million won from the Our Children's Independence Fund. The independence fund calculation assumes annual contributions of 1 million won each from the parent and the government, compounding at an annual return of 6 percent.

From age 19 onward, the total adds at least 18.55 million won for the university and first-career stage, 5.9 million won for job-seeking and AI training, 29.8 million won for employment and asset building, and 1 million won as a marriage grant. The 5.9 million won job-seeking and AI training figure breaks down into 3.9 million won in first-employment support and 2 million won from the K-New Deal Academy. The 29.8 million won employment and asset-building figure comprises 18 million won in a job-leap incentive, 7 million won from the Youth Future Savings account, and 4.8 million won in monthly rent support. Full tuition support at regional national universities is counted separately. Combined, the total reaches a maximum of approximately 195.82 million won by age 34.