Ahead of the Election, Even 'Malnyeon Byeongjang' Applications... Full Mobilization of Youth Employment Policies

'3 Million KRW Per Person' Expansion of National Employment Support Program

Unprecedented Support for 'Malnyeon Byeongjang'
Soldiers Two Months Before Discharge Eligible for National Employment Support Program

From Next Year, Promotion of 'Neungnyeok Bank System'
"Save National Job-Seeking 'Specs' and Use Them for Employment"

[Sejong=Asia Economy Reporter Moon Chaeseok] The government has unveiled almost all possible measures related to youth job-seeking support within a week. It even proposed an unprecedented job support policy for 'malnyeon byeongjang' (the last phase of mandatory military service).

In broad terms, the policy strengthens existing cash-type support, but some critics argue that these generous policies are being released to win the votes of the 2030 generation ahead of next year's presidential election.

'3 million KRW per person' National Employment Support System up to 2.92 million KRW per month

[Image source=Yonhap News]

The 'National Employment Support System,' a Korean-style unemployment assistance program launched by the government in January this year, is a representative job-seeking support system for vulnerable youth and middle-aged groups. It provides a job-seeking promotion allowance of up to 3 million KRW per person and matches applicants with small and medium-sized enterprises (SMEs). The eligibility criteria for this system have been significantly relaxed from a monthly income of about 2.43 million KRW to about 2.92 million KRW for a four-person household. This concretizes the policy items presented in the government's economic policy direction for the second half of the year announced in June.

The Ministry of Employment and Labor, the competent authority, announced on the 7th that the amendment to the Enforcement Decree of the Act on the Promotion of Employment and Stability of Job Seekers, containing these details, was approved at the Cabinet meeting. According to the amendment, eligibility criteria are relaxed from 'below 50% of median income and assets below 300 million KRW' to '60% and assets below 400 million KRW.' This expands the support target from a monthly income of 2,438,000 KRW to 2,925,000 KRW for a four-person household and from 914,000 KRW to 1,096,000 KRW for a single-person household.

According to the Ministry of Employment and Labor, from early January to the 1st of this month, 405,000 people applied for the system, and 324,000 were recognized as eligible. Considering that the number planned to be supported with this year's budget, including supplementary budgets, is 640,000, only about half of the target participated in the first to third quarters. A ministry official explained, "At the time of the announcement of the economic policy direction, there was a consensus within the government that support should be concentrated because signs of employment recovery were visible, and based on this, the policy is being implemented as planned."

'2030' vote-catching? ... Additional job support for 'malnyeon byeongjang'

[Image source=Yonhap News]

A notable point is that 'military personnel scheduled to be discharged within the next two months' have also been added to the support target. Anyone can receive support as long as they have the capacity to submit a job activity plan to companies participating in the National Employment Support System.

The timing of the announcement also became an issue. Shortly after the ruling party and government confirmed the establishment of a 'social reintegration preparation fund' that provides 10 million KRW upon discharge by adding government subsidies, a similar policy was proposed, raising suspicions that it might be a 'vote-buying act' ahead of the presidential election in March next year.

In response, a ministry official said, "Military personnel are not immediate job seekers, so we judged that a blind spot exists where they do not receive support in time," and explained, "The reason for setting the premise of 'two months before discharge' is the sum of the government's eligibility assessment period of one month plus the one-month period for submitting the job activity plan."

The government also expanded the exceptions allowing continued payment of allowances to those who could not properly carry out their job activity plans due to illness or injury. Previously, exceptions were only granted to those who could not comply with the job activity plan due to natural disasters or difficulties in relocating residence.

Expanded support for youth employed in SMEs to accumulate lump sums

The government also introduced policies to strengthen support so that not only job seekers but also youth already employed can accumulate larger lump sums.

From the 8th, the Ministry of Employment and Labor started an additional support project for the Youth Tomorrow Savings Program using the second supplementary budget. The Tomorrow Savings Program is a policy that allows young people employed in SMEs to accumulate a certain amount over two years and, with support from companies and the government, build a lump sum. In other words, it helps young workers accumulate more assets.

This project enables young people employed in SMEs to form assets of 12 million KRW by accumulating 3 million KRW over two years with support from companies and the government. For SMEs, it has the effect of encouraging long-term retention of young talent. The number of new beneficiaries supported by this year's main budget was 100,000, but due to early closure, an additional 20,000 will be supported using the supplementary budget.

From next year, 'NCS specs' can be saved and used for employment through the 'Competency Bank System'

[Image source=Yonhap News]

Going a step further, the government announced that from next year it will introduce the 'Competency Bank System,' which allows individuals to accumulate national job-seeking activity 'specs' and use them when seeking employment.

On the 9th, the Ministry of Employment and Labor submitted the 'Support Plan for Lifelong Vocational Competency Development in Response to Future Environmental Changes' as an agenda item at the 21st Presidential Committee on Jobs.

The core of the Competency Bank System is to manage job training achievements through the National Competency Standards (NCS) like a bank deposit so that they can be used in job-seeking activities. Individuals can receive certificates recognizing their accumulated learning information to use for employment, and companies can easily verify the specific job competencies of job seekers.

This policy, developed over several years by the Ministry's Vocational Competency Evaluation Division, is expected to help youth who cannot participate in private support programs like Samsung's software training program SAFFY.

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