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All policy options on table to resolve chronic youth unemployment: finance minister

All Headlines 09:00 March 09, 2018

SEOUL, March 9 (Yonhap) -- South Korea's chief economic policymaker said Friday that the government may consider granting an allowance to young jobseekers and create an extra budget to resolve the chronic unemployment of young adults.

"We can't rule out the formation of an extra budget and tax revisions," Finance Minister Kim Dong-yeon said in an economy-related ministers meeting. "All policy options are being examined to help resolve young people's dire job situations."

The minister earlier said the government may review an option for tax incentives or subsidies to young jobseekers and will mobilize all the tools at its disposal to create more quality jobs

Kim had hinted at making use of a supplementary budget to handle chronic youth unemployment.

The government is expected to unveil a set of measures to deal with the issue next week.

In January, President Moon Jae-in called for an all-out effort to create new quality jobs for young people, calling the country's high youth jobless rate a national disaster.

Creating quality jobs, especially for the young, was one of Moon's key election pledges. The president has promised to add 810,000 new jobs in the public sector during his single five-year term, which ends in May 2022.

Moon has had several display panels installed in his office to provide daily data on the country's jobless rate and other job-related developments.

As of the end of December, the unemployment rate for people between 15 and 29 years of age came to 9.2 percent, nearly three times higher than the overall jobless rate of 3.3 percent.

Market sources estimate that the extra budget may reach up to 15 trillion won (US$13.9 billion) given tax revenue and rolled-over tax income.

Finance Minister Kim Dong-yeon (C) speaks during an economy-related ministers meeting in Seoul on March 9, 2018. (Yonhap)

sam@yna.co.kr
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