Suwon city offers free suit rentals for job seekers. (Image courtesy of Yonhap)
SEOUL, Feb. 24 (Korea Bizwire) — As South Korea’s youth unemployment crisis deepens to levels worse than those seen during the IMF crisis and COVID-19 pandemic, local governments across the nation are stepping in with innovative support measures ranging from free interview suits to office rental subsidies.
According to Statistics Korea, January saw the sharpest deterioration in the youth (ages 15-29) perceived unemployment rate and employment rate in about four years. Adding to the concern, ultra-short-term workers made up a record 6.09% of total employment (1.74 million of 28.57 million workers) last year, indicating declining job stability.
In the absence of comprehensive central government solutions, municipalities are crafting localized strategies to address the mounting crisis.
The city of Gwangju has expanded its “Work Experience Dream Project,” launched in 2017, to include over 300 partner companies. The program matches young job seekers with local employers, offering either 25-hour weekly positions for five months or 40-hour positions for three months. The city has also increased its job-seeking allowance from 2.5 million won to 3 million won for qualified candidates.
The port city of Incheon is continuing its “Youth Leap Base” program, supporting 120 young people with internship opportunities. The city provides monthly wages of 2.43 million won per person for three months.
Several municipalities, including Gwangju, Busan and Ulsan offer free rental of business attire for job interviews. Many also cover costs for professional profile photos and qualification exam fees, with some regions like Gyeonggi Province and Ulsan including language test fees in their support packages.
Daegu has introduced a novel approach, offering 300,000 won in bank card points to 1,000 unemployed young people who receive customized career counseling. Jeju Island provides graduated cash incentives ranging from 100,000 to 600,000 won for unemployed youth and 50,000 to 250,000 won for employed youth through its “Youth Dream” project.
Local governments are also expanding support for overseas employment and entrepreneurship. Busan, in collaboration with the Ministry of Employment and Labor, hosted a global job fair last November that brought together 40 companies from 13 countries. Suwon plans to launch an overseas internship program targeting Korean companies in the United States.
To support young entrepreneurs, Gangwon Province is offering monthly rent subsidies of 300,000 won for up to 12 months in Wonju Innovation City, along with marketing support and essential equipment. Goyang provides comprehensive two-year support for early-stage entrepreneurs, including 15 million won in indirect costs during the first year and 80% of new hire wages in the second year.
Recognizing the importance of job retention, some regions are implementing innovative measures to help young workers maintain stable employment. Busan’s “Youth Joy Car” program provides vehicle rental subsidies for two years to young employees working in areas with limited public transportation access. Jinju offers annual benefits worth up to 1.2 million won in local currency to 300 young workers at small businesses to encourage long-term employment.
“The Work Experience Dream Project, now in its ninth year, has been our most successful initiative,” said Kim Ki-sook, Director of Education and Youth Affairs in Gwangju.
“We need to strengthen our role as a platform where young people can gain not only employment information and competitiveness but also emotional support, including careful attention to those who have given up looking for work.”
M. H. Lee (mhlee@koreabizwire.com)
