Starting next year, eligibility for the Youth Job Leap Incentive will expand to include young job seekers in the capital region, while direct incentives paid to employed youth will jump from a maximum of 3.6 million KRW to 9 million KRW annually. A new marriage, childbirth, and childcare "3-package" will also be introduced, allowing families to receive up to 74 million KRW per child.

The South Korean government announced these livelihood-focused support measures targeting youth, self-employed individuals, and vulnerable groups in its 2027 budget plan. Minister of Planning and Finance Park Hong-geun stated, "We have invested more selectively and custom-tailored to support public livelihoods and vulnerable groups, easing their burdens and rebounding potential growth rates."

● Youth Employment Subsidies: Up to 18 Million KRW Over Two Years

According to the Ministry of Planning and Finance on the 1st, the government will increase its youth support budget—spanning education, employment, and housing—by 53.5%, rising from 28.2 trillion KRW this year to 43.3 trillion KRW next year. The Youth Job Leap Incentive will expand its beneficiaries from 105,000 to 130,000 people, extending coverage to youth finding jobs in the capital area. Direct subsidies paid to employed youth will increase from a maximum of 7.2 million KRW to 18 million KRW over two years.

Amid an ongoing youth employment chill, job-seeking support is being reinforced. A "First Job Support Scheme" targeting 160,000 youths with no prior work experience will be established. The job-seeking allowance will rise from 600,000 KRW to 650,000 KRW per month, and the "K-New Deal Academy," where major corporations operate job training courses, will expand its beneficiaries from 10,000 to 50,000 people. Next year's youth employment budget will increase by 700 billion KRW from this year (2.6 trillion KRW) to reach 3.3 trillion KRW, marking the largest increase since 2021.

Public sector compensation is also seeing improvements. Next year’s civil servant pay raise rate is set at 3.9%, the highest in 16 years. Including various allowances, the starting salary for a Grade 9 public official will rise to the level of 3 million KRW per month.

● Self-Employed Childcare Allowances: 1.5 Million KRW for Three Months

New support systems are being created for self-employed individuals, special-type workers, and freelancers who have previously fallen into childcare leave blind spots. Starting next year, sole proprietors will be eligible to receive 500,000 KRW per month for three months, totaling 1.5 million KRW in childcare allowances. Industrial accident and health insurance premiums will also be supported for delivery riders and similar workers. Additionally, small business owners can receive up to 100,000 KRW to cover losses or part-time worker wages when temporarily closing their businesses to undergo national health check-ups.

Freshmen at 30 regional national universities will receive full tuition coverage, excluding medical, dental, pharmacy, and veterinary programs. Regions designated for the rural basic income will expand from 17 to 35 counties.

Measures to lower transportation costs are also expanding. Public transportation fare refund beneficiaries will increase from 5.37 million to 9.55 million people, newly including teenagers aged 13 to 18, who will receive around a 30% refund.

● Introduction of Marriage, Childbirth, and Childcare "3-Package"

Starting next year, newlywed couples will receive 1 million KRW upon marriage, and up to 20 million KRW for childbirth, depending on the number of children and region of residence. The government has reorganized stage-by-stage support into a "3-package" consisting of marriage support funds, child-welcoming support funds, and child basic allowances.

Couples who file a marriage registration will receive a one-time lifetime payment of 1 million KRW. Tax deductions for childbirth and adoption, the First Meeting Voucher, and parental allowances will be integrated into the child-welcoming support fund, providing 10 million KRW for the first child, 12 million KRW for the second, and 15 million KRW for the third or more, distributed across four installments over a year. Underdeveloped regions will receive an additional 5 million KRW.

The child allowance will be restructured into a child basic allowance with expanded benefit amounts and eligible ages. Children aged 0 to 12 will receive 200,000 KRW per month, while regional preference areas will receive 300,000 KRW per month. An additional 300,000 KRW per month will be provided for infants aged 0 to 1 raised at home. Families raising a third child or more in regional areas while providing home care for infants aged 0 to 1 can receive a maximum of 74 million KRW per child.

Originally, the child-welcoming support funds and child basic allowances were scheduled to apply only to children born after July of next year, which had sparked fairness controversies. President Lee Jae-myung remarked, "When we said the baseline would be July 1 of next year, people asked, 'What about those born just the day before?' I'm wondering if we should apply it starting January 1 instead."

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