Unemployment Measures

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The government has announced new measures to tackle unemployment. With projections that the youth population will increase over the next 3 years, there are concerns that youth unemployment will reach disastrous levels. We have the details.

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With overwhelming proportion of Korea's youths seeking to find a place in large conglomerates or public sectors, the government's latest package of measures aims to encourage young job seekers to enter small and mid sized firms When SMEs hire new young recruits, the government will provide 9 million won per person for 3 years. Plus, five years of full income tax exemption as well as support for housing and transportation expenses. Meaning, when a new employees' annual salary is about 25 million won, such subsidies will add about ten million won to the real income for a total of 35 million, which is some 90% of what their counterparts are getting paid at bigger firms.

[Soundbite] Pres. Moon Jae-in : "The problem is very clear. While youths complain of the tight job market, SMEs struggle with labor shortage. We need to resolve this dilemma."

The government also plans to actively support startups. Some 100 million won will be provided in the preliminary stage of such businesses while the financial aid can go up to one billion won in the firm's initial growth phase. Taxes will also be exempt for 5 years. Direct cash aid will also be offered to young job seekers. A decision made to reflect the opinion that many find costs involved in their job hunting very burdensome.

[Soundbite] Kim Young-joo(Minister of Employment & Labor) : "Monthly aid of KRW 500,000 for a 6-month period will be given to students seeking jobs right after graduation to ease their burden in preparing for employment."

Through these measures, the government seeks to increase the number of hires as much as possible over the next 3 years, when 390-thousand Koreans will be reaching their late 20s. There's another goal set by the current administration: easing the youth unemployment rate,which is currently close to 10%, to below 8%.