[War Supplementary Budget] 1.9 Trillion Won for Youth Entrepreneurship and Jobs... 800 Billion Won Allocated for Vulnerable Groups' Recovery

Government Approves Supplementary Budget to Overcome Middle East War Crisis
2.8 Trillion Won Allocated for Public Welfare Stabilization; 1.9 Trillion Won for Youth Entrepreneurship
900 Billion Won Each Invested in Startups and Job Creation

The government has allocated 1.9 trillion won to support youth entrepreneurship and job creation in response to the prolonged Middle East war, of which 900 billion won will be directed toward revitalizing startups. Additionally, 800 billion won will be set aside to aid the vulnerable, and a new allocation of 28 billion won will be provided to support deposits for victims of rental fraud.

On March 31, at the 13th Cabinet Meeting presided over by President Lee Jaemyung, the government deliberated and approved a supplementary budget of 26.2 trillion won aimed at overcoming the crisis caused by the Middle East war. Park Hongkeun, Minister of Planning and Budget, commented on the supplementary budget, stating, “As the Middle East war, which broke out at the end of February, enters its fourth week, the economic impact is becoming evident across the global economy, including the energy and shipping logistics sectors,” and added, “This has placed a greater burden on vulnerable groups such as small business owners and young people.”

In fact, this supplementary budget was designed to ease the burden on the general public caused by soaring oil and raw material prices, with a focus on protecting the vulnerable and expanding youth employment. Particular emphasis was placed on proactive measures for the labor market, local economies, and the startup ecosystem.

Job seekers participating in the "2026 Public Institution Employment Information Fair" held at the aT Center in Seocho-gu, Seoul on the 27th are looking at the recruitment bulletin board. 2026.1.27 Photo by Kang Jinhyung

1.9 Trillion Won for Youth Entrepreneurship, 900 Billion Won for Startups

Of the total supplementary budget, the government will allocate 2.8 trillion won to the livelihood stabilization sector. Of this, 1.9 trillion won will be directed toward supporting youth entrepreneurship and job creation, based on the judgment that young people are likely to be the first affected as the Middle East war continues.

First, the government has allocated a total of 900 billion won to foster a startup boom. Under the so-called "Startup for Everyone" project, 400 billion won will be invested to select 300 individuals through biannual competitions, each of whom will receive up to 100 million won in business commercialization funds. To help entrepreneurs scale up, a dedicated fund of 30 billion won and low-interest loans totaling 200 billion won will be supplied. The number of collaborative projects with large and mid-sized companies will be expanded to 1,434, and a new co-growth voucher program worth 20 billion won will be introduced.

The foundation for local startups will also be strengthened. A total of 300 billion won will be invested in startup cities centered around institutes of science and technology, and 100 billion won will be allocated for dedicated funds and the establishment of laboratories. An additional 24 billion won will be provided to expand startup-focused universities into science and technology institutes, and commercialization funds for local enterprises will be increased to cover 450 companies. A total of 40 billion won will be invested in developing daily-life innovation technologies. The plan also includes 50 billion won in dedicated funds for entrepreneurs restarting their businesses, as well as support for 298 companies through a re-challenge package program (worth 10 billion won). Seventeen new one-stop startup support centers will be established.

With an investment of 900 billion won, the government aims to expand youth employment by 107,000 positions. The "K-New Deal Academy" will receive 100 billion won to support 15,000 participants, while the National Employment Support Program will be expanded by 78.6 billion won to cover 135,000 individuals. A total of 26.5 billion won will be allocated to support youth challenges and work experience programs. The number of beneficiaries of the Tomorrow Learning Card will be increased to 60,000, and an additional 150 billion won in policy funds will be supplied to small business owners hiring young people. The Youth Job Incentive Program will be expanded to 65,000 beneficiaries, with 25.8 billion won in support.

Additionally, 23,000 new public and value-oriented jobs will be created, including 9,500 positions in the Delinquency Management Team, 3,500 in Social Solidarity Economy Work Experience, and 5,000 in Special Farmland Investigations.

28 Billion Won for Rental Fraud Deposits, 90 Billion Won for Delayed Wage Loans

To help vulnerable groups recover, 800 billion won will be allocated to strengthen support for low-income households. The "Geunyang Dream Center" will be expanded to 300 locations, and 13.1 billion won will be invested to increase emergency welfare support by 16,000 cases. Care services will be provided to 28,000 households (9.9 billion won), and heating and cooling facilities in welfare institutions will be expanded to 750 locations (12.8 billion won). For victims of rental fraud, a new allocation of 27.9 billion won will be made to guarantee at least one-third of their deposit.

Support for small business owners will also be expanded. The Hope Return Package will be increased to 55,000 cases (24.6 billion won), and an additional 200 billion won will be supplied in emergency management stabilization funds to support business normalization. For vulnerable workers, 18.6 billion won will be allocated to expand employment retention subsidies. Loans to clear delayed wages will total 89.9 billion won, and 31.6 billion won will be allocated to living stabilization funds for low-income workers. The region-led job creation project, the "Butim Ium Project," will be expanded to 13 locations with 12 billion won in support. The basic income program for farmers and fishermen will also be increased to 15 locations.

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