[2030 Youth Poverty①] "Are Young People Different?"... Received Just Enough Support to Stay Alive

Basic Livelihood Security Recipients Struggle Amid Employment Drought
Tight Finances After Fixed Costs Like Rent
Finding Jobs That Meet Eligibility Criteria

[Asia Economy Reporters Oh Gyumin, Gong Byungseon, Jang Sehee] The record high number of young basic livelihood security recipients is due to shocks in the employment market and economic recession. Even just after the outbreak of COVID-19 in 2020-2021, the total number of unemployed people in their 20s and 30s reached 1,036,000. As companies postponed hiring and only short-term public sector jobs increased, the youth employment market worsened. Young people receiving basic livelihood security have nowhere to earn income and are losing existing jobs, making their living conditions difficult. The relaxation of this year’s housing benefit eligibility criteria from 45% to 46% of median income also significantly influenced the increase in young basic livelihood security recipients. Last year, housing benefits were paid to those with a single-person income of 820,000 won or less, but from this year, the threshold rose by about 70,000 won to 894,000 won or less.

Received 700,000 won per month... but spent all on rent and food, 'vicious cycle of poverty'

What is life like for young people living as basic livelihood security recipients? Kim Seungho (27, pseudonym), currently serving in the military, said, "It felt like the government was not supporting me to live a stable life but only giving just enough so I wouldn’t die." From 2015 until early last year, Kim received about 700,000 won monthly from the government, combining livelihood benefits (450,000 won) and housing benefits (250,000 won). Kim said, "After paying 300,000 won for monthly rent and 250,000 won for food, there were still many fixed expenses like transportation, communication, and utilities, which made it difficult." More than 70% of the total went to rent and food, and some days there was not even enough money left in the bank account to buy a meal. Although Kim earned 300,000 won from part-time jobs, after saving 200,000 won for tuition, only 100,000 won remained. Right after the COVID-19 outbreak in early 2020, his part-time job was cut off and school shifted entirely to remote classes. Eventually, he decided to join the military. Having a steady monthly income and a place to eat and sleep made him feel more at ease than when he was in society. Government support was a double-edged sword for Kim. It was like a drought-relieving rain that helped with livelihood, but when he earned money from work, the support decreased. Kim said, "I had to do extra part-time work because it was impossible to make ends meet, but at that time, the support amount dropped from 700,000 won to 500,000 won."

The basic livelihood security system reduces benefits by the amount of income earned while working. In fact, livelihood benefits are only available if income is 583,000 won or less for a single-person household. Medical (777,000 won), housing (894,000 won), and education (970,000 won) benefits are also structured so that if income exceeds certain thresholds, support is not provided. Kim has worked to keep his income below 1,000,000 won because if he earns more than that, he loses his status as a basic livelihood security recipient. He said, "Even if I earn 1,000,000 won, I cannot save all of it."

Feeling 'helpless' before social reintegration... also worried about soaring Seoul housing prices

Professor Jeong Jaehoon of the Department of Social Welfare at Seoul Women’s University explained, "The basic security system has a dilemma known as the ‘poverty trap’ everywhere overseas as well. Because benefits are cut as you work more, situations arise where people do not work."

Kim, who is four months away from discharge, already expressed a sense of ‘helplessness’ about reintegrating into society. He said, "Before joining the military, I lived with three friends in a house with no sunlight. Once discharged, I have to find a place near Wangsimni, close to school, but housing prices have risen even more in the meantime, so I am very worried."

Friends who lived with him before military enlistment have scattered as their situations worsened. Seoul housing prices have surged significantly, causing not only purchase prices but also rent and lease costs to rise accordingly. He said, "Being young doesn’t mean you can immediately find a job. When young people are told to go earn money at places that are not considered good jobs, I wonder if that is really right."

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