Deputy Prime Minister Koo Yun-cheol vows all-out effort to revive youth employment; key programs including K-New Deal Academy to be fast-tracked; agentic AI workforce training to expand in second half; employment retention subsidy eased, Buteom-eum project launched
The government has moved to fully activate its Youth New Deal policy and accelerate the development of talent for future industries, including AI, in response to a worsening youth employment situation.
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol chaired a meeting of employment-related ministers at the Government Seoul Complex on Thursday to review the current employment situation and assess response measures.
Koo said the prolonged war in the Middle East, rising raw materials prices and supply difficulties were widening uncertainty in employment conditions. "The hardships facing young people in particular are intensifying, and sector-specific weakness in manufacturing, construction, and agriculture and fisheries is also deepening," he said.
He then called on relevant ministries to move swiftly on the Youth New Deal's core tasks. "Activating youth employment and strengthening their capabilities is critically important," he said. "Execute the key tasks of the Youth New Deal plan with urgency and actively identify additional supplementary measures."
The Youth New Deal, announced in April, is a comprehensive package supporting young people through every stage — from job preparation and vocational training to work experience and employment placement. It focuses on expanding tailored education in digital, AI and semiconductor fields that young people prefer, and on developing talent that matches corporate demand.
Flagship programs include K-Digital Training (KDT), the K-New Deal Academy and the Youth Leap Boot Camp. KDT is a vocational training program that develops hands-on talent in emerging digital technology fields, with a stronger emphasis on company-led education and hiring linkages. The Youth Leap Boot Camp builds practical skills through field project-based learning.
The government plans to reduce mismatches by bundling vocational training, work experience and employment placement into a single support package from the moment young people first enter the labor market.
In the second half of the year, the government plans to train more than 1,000 new young specialists in advanced industries, with a focus on agentic AI. The goal is to secure a workforce versed in next-generation AI — systems capable of autonomous judgment and task execution that go beyond generative AI.
The government also announced it will provide 30,000 low-income young people with no work experience a job-seeking allowance of 600,000 won (about $394) per month for six months. Some 78.6 billion won in supplementary budget funds will be channeled into the National Employment Support Program to help young people find work. The program will also offer one-on-one in-depth counseling through dedicated advisers, individualized job-search plans, and employment support services including vocational training and work experience. Those who remain employed long-term after finding a job will receive a job-success bonus of up to 1.5 million won.
The government is also stepping up efforts to cushion employment shocks in industrial sectors. It recently eased eligibility requirements for the employment retention subsidy and is running the "Buteom-eum Project" targeting areas with a high concentration of at-risk industries. The government plans to monitor conditions by region and sector and, if necessary, consider designating employment crisis zones and special employment support industries.
The government is also pursuing a "corporate support-employment linkage fiscal support plan" to expand fiscal incentives for companies that create jobs.
Alongside this, the government said it will draw up a "Basic Plan for Employment Stability in Industrial Transition" to support workers who need to change roles as industries adapt to AI transformation and the green transition.
"We will pursue policy in line with the voices and perspectives of young people not only through the Youth New Deal but across all economic policies, including structural reform," Koo said. "The government will serve as a firm stepping stone so that young people can prepare for their future."
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