The government will increase the budget for youth jobs next year by more than 1 trillion won. In response to the AI (Artificial Intelligence) revolution, it will strengthen step-by-step support ranging from first-time employment for young people without work experience to career building and retention after hiring. Fiscal resources will also be allocated to vocational training and employment services to help young people enter and settle into the labor market.
The Ministry of Employment and Labor's 2027 budget proposal, finalized at the State Council meeting on the 1st, stands at 38.9537 trillion won, an increase of 1.2776 trillion won (3.4%) from this year's original budget of 37.6761 trillion won. The Ministry will concentrate resources secured through rigorous expenditure efficiency improvements into the areas of 'Future, Inclusion, and Security.'
Among these, the employment budget related to youth will increase from 2.1398 trillion won this year to 3.2049 trillion won next year, a rise of 1.651 trillion won (49.8%). In response to industry and job changes caused by AI and the spread of corporate hiring practices focused on experienced workers, the Ministry will redesign the youth support system into 'preparation for job entry → experience and career building → employment and retention support.'
First, a new first-time youth employment support system (K-Youth Guarantee) will be established. A total of 379.3 billion won will be invested to support 160,000 people, allowing young people without work experience to receive career exploration, work experience, training, and employment support services. The job-seeking allowance will also be increased from 600,000 won per month to 650,000 won.
Support will also be expanded to help young people build careers beyond their first job. K-New Deal Academy will expand from 10,000 participants this year to 50,000 next year, with a budget of 489.5 billion won allocated. The plan is to provide young people with opportunities for practical experience at top companies and adaptation to society and the workplace.
A new youth AI first-job career support project will also be established with a scale of 14.5 billion won, enabling young people who have completed AI training to gain their first work experience in corporate settings. It is planned to support 750 young people who have finished AI training courses to be hired by companies and perform actual tasks such as AX projects.
To ensure stability after employment, a new budget of 20.1 billion won will be allocated for Youth Playground, operating five offline hubs and online mentoring and communities. The Youth Job Growth Incentive Fund will expand the number of beneficiaries from 105,000 to 130,000 to support employment and retention.
Budgets will also be increased for vocational training that builds job competencies needed in the AI era. The K-Digital Training budget will expand from 521.3 billion won to 608.9 billion won, and the number of participants in AI training courses will increase from 10,000 to 20,000. The budget for the Physical AI Factory Education and Training Testbed will also be increased from 100 thousand won to 24 billion won.
AI will also be integrated into employment services. The government is promoting the AI transformation of employment services by establishing AI Employment Centers to diagnose job seekers' situations and capabilities and provide customized employment support services. Plans are also in place to expand AI services for labor law consultations, accident investigations, and industrial safety.
Support will also be expanded beyond youth to vulnerable groups and working parents. Childcare allowances for special employment workers and freelancers will be newly established with a scale of 11.6 billion won, and investments related to balancing work and family life will also increase.
The labor market safety net will also be strengthened. Workers' compensation benefits will increase from 8.1463 trillion won this year to 8.6246 trillion won next year, and a system for advance payment of workers' compensation benefits will be introduced. The lump-sum payment fund to protect wage-arreared workers will also expand from 746.1 billion won to 776.6 billion won.
The overall budget was secured through adjustments to similar and overlapping projects and efficiency improvements in project operation systems. In particular, five projects including Youth Job Creation Support, Youth Employment Career and Work Experience Support will be transferred and allocated using the Future Response Fund, for which 2.5667 trillion won has been allocated for next year.
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