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Members of Youth Union

Seoul Metropolitan Government plans to offer monthly “activity subsidies” of 500,000 won (US$440) as of July to young people preparing for employment.

The city also said it plans to go ahead with the policy even if the central government attempts to put it on hold during prior discussions as per the Framework Act on Social Security.

On Apr. 11, the city approved and released the specifics of a young persons‘ activity support project previously announced last year, including its targets, eligibility criteria, scope, and components. The key feature is a monthly stipend of 500,000 won in cash for up to six months as a “social participation activity subsidy” for unemployed young people committed to finding jobs.

The payments are to be used for private academy study to gain certificates, textbook purchasing, test registration, group study management, and other areas of employment or start-up preparations. Recipients lose eligibility once they find work or if they are found to be receiving duplicate support from the central or local government.

Eligible recipients include 3,000 unemployed people aged 19 to 29 who have been living in Seoul for a year or more. Priority selection is to be given to those who have been unemployed for a long time or earn low incomes and are unable to take part in job training programs like the government’s “employment success package” because of their need to make a living right away.

Students currently enrolled in undergraduate or graduate university programs would be ineligible. The final scope was narrowed from the original plan to support “excluded young people” such as those deferring graduation and so-called NEETs (those not in education, employment, or training), with a focus on those who are more disadvantaged in societal terms.

The city initially planned to begin soliciting applications in April, but the project ran into delays over objections by the administration and ruling Saenuri Party. The city applied for preliminary discussions in January after the Ministry of Health and Welfare contended that it was an “employment policy project” requiring discussion as a new social service effort according to the Framework Act on Social Security. The administration is required to make a decision within six months of application on whether to allow it.

“We will definitely participate in the discussions, but we also plan to go ahead with the project as of July even if the administration doesn’t accept it,” said a source with the city.

But the welfare ministry also filed a Supreme Court suit against the Seoul Metropolitan Council and requested a suspension decision on the program’s budget in January. If the court accepts the request, the project will be immediately halted.

The city of Seongnam in Gyeonggi Province also plans to continue paying “allotments” to young people for a second straight quarter as of Apr. 20, despite the administration‘s objections. Seoul’s Nowon district plans to begin paying activity subsidies from private-sector donations to 50 young people preparing for employment as of June.

By Won Nak-yeon and Im In-tack, staff reporters

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