[2022 National Audit] "Youth Companion Card Sunset Next Year... Transportation Cost Burden for 160,000 Youth Workers in Industrial Complexes"

Kim Kyung-man, member of the Democratic Party of Korea.

[Asia Economy Reporter Donghyun Choi] Concerns have been raised about the need for alternatives to the Youth Companion Card program, which is set to expire next year.

According to the "Summary Report on the Establishment of Improvement Measures for the Industrial Complex Small and Medium Enterprise Youth Transportation Cost Support Project," submitted by the Korea Industrial Complex Corporation to Kim Kyung-man, a member of the National Assembly's Industry, Trade, Small and Medium Enterprises Committee from the Democratic Party of Korea on the 14th, the average monthly transportation cost for young workers in industrial complexes is 164,000 KRW. The Youth Companion Card program provides 50,000 KRW per month to young workers employed at small and medium enterprises in industrial complexes with poor transportation conditions. The satisfaction level among youth regarding this program is very high.

Looking at the satisfaction trends of young workers over the past three years, responses indicating that the program helped reduce transportation costs increased by 8.6%, showing the highest satisfaction level. Responses indicating a positive impact on job satisfaction also increased by 2.6%. As of last year, 93.8% of respondents expressed a desire for the program to continue.

It was confirmed that the program had a positive impact not only on young workers but also on small and medium enterprises in industrial complexes. Over the past three years, responses indicating that the program helped with new hires of young workers increased by 6.7%, and responses indicating that it contributed to the continued employment of young workers increased by 5.7%.

The satisfaction of young workers and SMEs also translated into actual economic effects. The report analyzed that from the program's inception in 2018 until June 2021, approximately 268.2 billion KRW in support funds were invested nationwide in the youth transportation cost support project. This generated about 461.1 billion KRW in production inducement, about 229.9 billion KRW in added value inducement, and approximately 3,863 jobs.

The report also proposed improvement measures to secure the sustainability of the Youth Companion Card program. Suggestions included differentiating points by industrial complex considering regional underdevelopment, or improving the program into a mileage accumulation type tailored to young workers' consumption patterns, such as a public transportation-specialized or fuel cost-specialized type. Beyond transportation cost support, an integrated voucher form aimed at improving the overall quality of life for youth in industrial complexes?including culture, communication, and education?was also discussed.

The Korea Industrial Complex Corporation reported these alternatives for the Youth Companion Card program to the Yoon Seok-yeol Presidential Transition Committee through the Ministry of Trade, Industry and Energy earlier this year. However, they were not reflected in the 120 major national tasks nor in the 2023 budget projects.

Assemblyman Kim Kyung-man pointed out, "With the Youth Companion Card program, which has consistently delivered policy effects over the past five years, ending without alternatives, about 160,000 young workers in industrial complexes are left to bear the burden of transportation costs alone." He added, "I cannot help but express concern about whether the Yoon Seok-yeol administration truly intends to accompany the youth." He further stated, "To improve the employment environment of local industrial complexes, which are losing growth momentum due to a shortage of young people, the youth transportation cost support project must continue. We will carefully review the 2023 budget examination to ensure that alternatives to the Youth Companion Card are prepared."

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