Yoon pledges scholarships, benefits and opportunities for young people

Politics

Published: 05 Mar. 2024, 19:01 Updated: 05 Mar. 2024, 19:46

Yoon pledges scholarships, benefits and opportunities for young people

President Yoon Suk Yeol, left, speaks at the 17th public livelihood debate on youth policies at Ivex Studio in Gwangmyeong, Gyeonggi, on Tuesday. [JOINT PRESS CORPS]

President Yoon Suk Yeol promised more state scholarships, study abroad opportunities, tax benefits and savings programs for young people in a town hall meeting Tuesday.

Yoon proposed to significantly increase beneficiaries of state scholarships from the current 1 million college students to 1.5 million people, among other policies, to address the concerns of young people in the country in a town hall meeting held at Ivex Studio in Gwangmyeong, Gyeonggi.

The 17th public livelihood debate focused on youth policies, including support for college tuition, housing and child care, bringing together some 460 officials and young civilians as the nation tackles overarching concerns about difficulties the younger generation faces finding their footing, linked to decreased marriages and low birthrates.

The government announced it will launch a new housing scholarship to provide up to 2.4 million won ($1,800) annually to help ease students' rent concerns.

Likewise, the government will increase the number of people receiving "work scholarships" from the current 120,000 to 200,000 from next year so that students can earn tuition money and living expenses both on and off campus while studying and working.

"We will enable young people to study and work to prepare for the future and cultivate their dreams without any worries," Yoon said, promising to "ensure that no youth misses the opportunity to study due to economic reasons."

Yoon further promised to fully exempt maternity allowances paid by companies to their workers to relieve the burden on companies and enable more employees to benefit.

While some companies like Booyoung Group came up with generous measures to incentivize childbirth by paying up to 100 million won in cash as maternity leave allowances to their employees, the public has recently criticized the taxes levied on such stipends as excessive.

The government will now ensure employees are not taxed on maternity leave pay, while companies will also be able to deduct maternity allowances, reducing its corporate tax burden.

This comes as the government tries to address the country's dismally low birthrate, attributed in large to young people's difficulties finding affordable housing, delayed marriages and finding adequate child care.

On the same day, the Finance Ministry announced that it would amend the Income Tax Act to exempt income tax on maternity subsidies paid by companies to employees within two years of giving birth.

The government plans to provide an advance payment system for child support so that single parents who do not receive child support can be paid first in state stipends.

President Yoon Suk Yeol speaks at the 17th public livelihood debate on youth policies at Ivex Studio in Gwangmyeong, Gyeonggi, on Tuesday. [JOINT PRESS CORPS]

During the town hall, Yoon also promised to "increase opportunities for young people to save a lump sum of money for the future."

The government said more people will be able able to sign up for the "Youth Leap" savings accounts.

In the future, single-person households earning close to 5 million won per month, or dual-income households earning more than 8 million won, will be able to sign up for the Youth Leap program through eased requirements.

Yoon said he would ease the terms to maintain the account from a minimum of five years to three years, enabling young people to use the funds based on their needs.

The Youth Leap account is a savings program introduced by the Yoon government as one of his campaign pledges to help young adults between 19 and 34 who make less than a specific annual salary to save up to 50 million won through monthly deposits over five years.

The government will also incentivize young people's health and leisure activities, making income tax deductions available for cultural and fitness expenses, such as memberships for using swimming pools and fitness centers. It will also provide more support for youths to receive psychological counseling.

The president said that the government will help develop the global capabilities of young people, including through international student exchange programs and working holiday opportunities.

This includes the Korea WEST exchange program, which allows Korean university students and young professionals to intern and study English in the United States.

Yoon named K-pop stars BTS and Blackpink, footballer Son Heung-min and Lee Sang-hyeok, better known as Esports legend Faker, as he focused on young people who have made a splash around the world.

"It is the responsibility of the country and government to help our outstanding young people demonstrate their abilities to the fullest," Yoon said. "Youths are free beings who should not be buried in vested rights and by interest cartels."

He added that the "perspectives of young people are very important in creating a fair and just country."

Yoon promised to "further expand the participation of young people in government affairs to create the future of this country together."

BY SARAH KIM [kim.sarah@joongang.co.kr]