Gov't expands youth employment subsidy to 115,000 recipients, extends coverage to mid-sized firms outside Seoul

Ministry of Employment and Labor holds field forum at Novarex in Cheongju

Budget raised to 925.1 billion won; youth hired outside Greater Seoul eligible for up to 7.2 million won incentive

Minister of Employment and Labor Kim Young-hoon [Ministry of Employment and Labor]

The government plans to raise the budget for its Youth Employment Jump-Start Incentive program to 925.1 billion won ($595 million) this year and extend eligibility to mid-sized companies outside the Greater Seoul area. The number of beneficiaries will also expand to 115,000, and youth who take jobs in regional areas will receive a tenure incentive of up to 7.2 million won over two years to encourage them to find and keep work outside the capital.

The Ministry of Employment and Labor held a field forum Wednesday at Novarex, a health functional food manufacturer in Osong-eup, Cheongju, North Chungcheong Province, bringing together executives from companies participating in the program and young workers. The forum was organized to hear firsthand about the difficulties businesses and youth face while working and building careers in regional areas, and to develop more effective support measures.

The Youth Employment Jump-Start Incentive is the government's flagship youth employment support program, designed to ease companies' labor cost burden and encourage them to hire young workers. Last year it helped 107,000 young people enter the labor market, and since the program launched in 2022, cumulative support has reached 411,000 people.

Overview of the 2026 Youth Employment Jump-Start Incentive program [Ministry of Employment and Labor]

This year's program marks a significant expansion in both scale and scope. The budget rose 122.5 billion won from last year's 802.6 billion won to 925.1 billion won, and the number of recipients increased by 8,000 — from 107,000 to 115,000. Particularly notable is the extension of the tenure incentive, previously available only to youth hired in labor-shortage sectors, to all young workers taking jobs outside the Greater Seoul area. Eligible companies have also been broadened from priority-support firms to include mid-sized companies outside the metropolitan area. Youth hired in regional areas can now receive a tenure incentive of up to 7.2 million won over two years, on top of a separate hiring subsidy of up to 7.2 million won paid directly to their employer.

Early results suggest the expansion is having an effect. As of June, 55,000 young workers had found jobs at 25,000 companies through the program — up from 45,000 youth at 21,000 companies during the same period last year. Among those, 325 mid-sized companies outside the Greater Seoul area participated, employing 2,222 young workers through the program.

The forum also focused on the labor shortages facing regional companies and the difficulty of retaining young workers in local communities. Company executives said the expansion of eligibility to mid-sized firms had helped with youth hiring, but called for accompanying measures to keep young workers in the area after they are hired — including improvements to residential conditions and lifestyle infrastructure.

Young participants said the wage gap with the Greater Seoul area was not the only deterrent to regional employment: housing costs and a lack of cultural and lifestyle amenities also made them hesitant to take jobs outside the capital. They asked for expanded support tailored specifically to youth who choose to work in regional areas.

"For young people in regional areas to settle down without leaving their hometowns, it is above all essential that companies provide quality jobs," Minister Kim Young-hoon said. "The government will continue to refine its fiscal support to reduce the hiring burden on companies, while strengthening linked support — including residential and asset-building assistance — to help young people put down roots in their communities."

fact0514@heraldcorp.com