Half of young people struggling financially in Seoul: Study

 
Nearly half of the youth population residing in Seoul now lives in poverty, with many seeking financial support from their parents, according to a new study released by the Seoul Metropolitan Government and Seoul Institute on Dec 6.

More than half of the youth population in Seoul - 55.6 per cent - faced asset poverty, according to the 2022 Seoul Young Adult Panel Study. This means that they lack sufficient liquid assets to cover their basic needs for three months, The Korea Herald reports.

The asset poverty rate for the youth population living alone, in particular, was 62.7 per cent. This was 7.1 percentage points higher than the asset poverty rate for Seoul's entire youth population.

The poverty rate based on the young adult population's individual income also reached 37 per cent, with higher rates recorded for those in the younger age range.Those aged 19 to 24 had the highest personal income poverty rate, at 73.4 per cent. Meanwhile, those aged 35 to 36 had the lowest personal income poverty rate, at 14.2 per cent.

Personal income poverty refers to individuals with a disposable income below 50 per cent of the average median income for the total population.
Nearly 28 per cent of young adults surveyed reported having insufficient living expenses.

When asked how they dealt with the situation, 41.2 per cent of respondents said they received support from their parents.
This was followed by 17.7 per cent who said they had cancelled savings or deposit accounts and 11 per cent who said they received loans from financial institutions.

Another 10.4 per cent said they could not figure out a way to deal with their lack of living expenses.

The study concluded that most of Seoul's youth population first resorted to personal relationships to overcome economic hardships, then turned to resources farther afield.

The study was conducted on 5,083 adults aged 18 to 35 and living in Seoul. Additionally, 47.5 per cent of respondents stated that they lived with their parents, while 34.3 per cent indicated they lived alone.

The average expected age for this population to become independent from their parents was 30.6 years.By age group, the expected age of independence was 27.4 years for those aged 19 to 24 and 39 years for those aged between 35 and 36.

Some 87 per cent of respondents said they were single. Of these, 46.5 per cent stated that they intended to get married, while 19.1 per cent said they did not.1.26m South Korean young people unemployed, over half hold college degrees: Survey Young South Koreans ditch white-collar jobs to become 'smart farmers'

"The high poverty rates among the youth population can be attributed to the consistently high unemployment rates," said Professor Shin Gyeong-a from Hanlim University's department of sociology.

According to Statistics Korea, 45.4 per cent of the youth population aged 15 to 29 were recorded to have been unemployed for more than a year as at 2023."If unemployment rates persist, this can lead to an increase in Neet youth - or young people who are not in education, employment or training. More governmental support is needed to not only aid young adults struggling with employment, but also to encourage Neet youth to return to the labour market," the professor said.

Professor Lee Bong-ju from Seoul National University's department of social welfare also stated that if youth poverty persists, it "could lead to higher numbers of young adults who are unhappy with their lives or who experience depression".According to the Seoul Metropolitan Government and Seoul Institute's study, 34.7 per cent of young adults residing in Seoul stated that they were struggling with depression.

Among them, 44.3 per cent were unemployed after graduating, while 42 per cent had been laid off.

Prof Shin said the poverty rate for older adults may also feel knock-on effects from youth poverty.
"If unemployment and high numbers of Neet youth persist, it will become harder for the youth population to become independent from their parents, and they will continue to receive financial support from them," Prof Shin said.

"In turn, it will become even more difficult for these parents to save money for retirement."
South Korea's senior poverty rate was the highest among member countries of the Organisation for Economic Cooperation and Development, at 40.4 per cent, according to the Korea Employment Information Service in June.

"More governmental aid and employment support is needed to help youth struggling economically to get out of poverty," Prof Lee said.
Income support, in the form of providing money or supplying goods, was cited by 26.9 per cent of respondents as an area that should be strengthened for young adults, followed by employment support and asset formation support.