The government’s recent youth policy package, unveiled on April 28, seeks to deepen incentives for families and young workers to relocate from the Seoul metropolitan area to regional cities. In addition to a newly established savings program dubbed the “Our Child Independence Fund,” officials plan to roll out a second phase of public-institution relocations this autumn, alongside a suite of education, housing and labor measures designed to make moving out of the capital region more appealing—especially for low- and middle-income households.
Under the Independence Fund, every child born into a household earning up to 150 percent of median income will see annual contributions of 1.0–1.2 million won (US$750–900) made on their behalf from ages 0 to 18. Projected returns mean the fund could grow to roughly 100 million won by the time the beneficiary reaches adulthood. Child-rearing subsidies and basic child allowances will also increase, with firstborns in designated local “high-preference” areas receiving up to 30.28 million won more than under the previous scheme.
To support youth employment, the program offers those joining small and medium-sized firms in regional areas a monthly subsidy equivalent to 1 million won for two years after hiring. Additionally, later this year the government will announce plans to transfer more public agencies—following its first wave of relocations—in an effort to create jobs outside Seoul and its satellite cities.
Analysts say the key to success lies in securing “decisive inducements” for Seoul-based young adults and newlyweds, particularly those from single-earner or low-income dual-earner households. High-income, dual-earner couples have little incentive to leave, but families facing hefty living‐cost burdens may view regional new towns as a viable alternative.
Education is a top concern. Proposals under review include regional quotas at flagship universities, the establishment of top-tier high schools in innovation cities and renewed preferential admissions for large-family applicants at provincial national universities—whose tuition is already free. Expanding corporate-linked recruitment programs at local universities is also on the table.
On the tax and regulatory front, officials plan to widen income-tax exemptions currently reserved for small-company employees to encompass those working at regional branches of large firms. Labor-law reforms are expected to offer more flexible work hours, helping single-earner households increase their take-home pay. In housing, cheaper land in new towns will be paired with opportunities to purchase high-quality apartments at reduced prices.
With the second wave of public-institution relocations slated for announcement by November, policymakers insist that only “bold measures” will prevent the shortcomings of the first transfer from resurfacing—and truly transform regional migration into a sustainable “Dream” for young Koreans.