Expansion of Half-Price Tuition and '200,000 Won Monthly Rent' Support for Low-Income Youth... Government: "Fair Start for All Youth"

Office for Government Policy Coordination Youth Policy Coordination Committee

[Sejong=Asia Economy Reporter Son Sunhee] The government is expanding support for 'half-price tuition' and will provide 200,000 KRW monthly rent support to low-income, housing-vulnerable youth. The government stated, "We aim to reduce disparities within the youth generation so that all young people can start from a fair starting line." However, criticism has been raised that the budget was mobilized targeting the votes of the 2030 generation, whose support base is weak, ahead of the presidential election in March next year.

Prime Minister Kim Boo-kyum held the Youth Policy Coordination Committee on the 26th and announced the joint 'Youth Special Measures' by related ministries containing these details. The Youth Special Measures include a total of 87 tasks across fields such as youth employment, housing, welfare, education, and participation rights.

The government decided to provide monthly rent support of up to 200,000 KRW for one year to homeless youth whose household income is at or below 100% of the median and whose personal income is at or below 60% of the median. The estimated number of beneficiaries is about 152,000.

Additionally, the income eligibility for monthly rent loans, which previously applied only to those with an annual income of 20 million KRW or less, will be raised to 50 million KRW to expand the support target. A new 200,000 KRW monthly rent interest-free loan will also be introduced.

To stabilize youth housing, the government plans to supply 54,000 youth housing units by 2022 and a total of 243,000 units by 2025. Furthermore, the Democratic Party and the government announced in a related party-government meeting that morning that they will also consider a 'Youth Special Supply' system for single-person households and newlywed couples without children.

Gu Yoon-cheol, Director of the Office for Government Policy Coordination, said at a briefing, "Primarily, we will reduce the housing cost burden faced by youth, and ultimately, enable young people to live in a more stable housing environment."

In the education sector, the government will significantly expand national scholarship support. Not only low-income groups but also the middle class (100-200% of median income for a four-person household) will see a substantial increase in the so-called 'half-price tuition' support limit. Accordingly, support for the 8th income bracket (150-200% of median income), which was previously 675,000 KRW, has been greatly increased to 3.5 million KRW. Especially for multi-child families, full tuition support will be provided from the third child onward. Basic and near-poverty households will receive scholarships of 7 million KRW, and full support will be provided from the second child onward.

Moreover, the scope of student loan support will be expanded to graduate students, and interest exemption support on loans during enrollment will be strengthened for vulnerable students.

For vocational high school students facing employment crises due to the prolonged COVID-19 situation, job-linked vocational training courses will be newly introduced, and employment-linked incentives of up to 5 million KRW will be provided. Customized talent development in future promising industries such as software (SW), regulatory science, pharmaceuticals, bio, and tourism will also be strengthened.

Director Gu said, "Although half-price tuition has been achieved at the total amount level, many citizens did not feel it," adding, "By significantly expanding national scholarship support this time, it is expected that practical half-price tuition can be achieved at the individual level as well."

He added, "This special measure will further solidify the foundation of young people's lives," and "We will raise policy awareness and improve the field's sense of impact so that young people can easily find policies and actually receive support."

This content was produced with the assistance of AI translation services.