A grim survey result has emerged, revealing that six out of ten college seniors and graduates have effectively given up on job-seeking. Amid compounded crises such as high exchange rates, pressure to invest in the U.S., and regulatory risks, companies are hesitating to invest or hire anew, leading to a shortage of quality jobs. Consequently, young people are increasingly abandoning job searches altogether. In this context, the government has injected approximately 4 trillion Korean won in taxes to provide the largest-ever scholarships to university students this year. The scholarships, which are distributed based on household income, saw their eligibility criteria relaxed, expanding the number of beneficiaries to 1.98 million—a 25.3% increase from the previous year. Critics argue that instead of investing in sustainable long-term job creation, the government is resorting to one-time scholarships to placate youth dissatisfaction, a form of “populist support.”
Frozen Investment and Hiring
According to the Federation of Korean Industries’ (FKI) “2025 University Student Employment Perception Survey” released on the 9th, 60.5% of fourth-year students and graduates preparing for employment are classified as “passive job seekers” with low expectations. Passive job-seeking refers to not actively preparing for or planning employment, or having entirely halted job searches. This category includes perfunctory applications (32.2%), rarely applying (21.5%), and taking a break (6.8%). Only 28.4% responded that they are actively seeking employment.
When asked why they are passive in job-seeking, over half (51.8%) cited a “lack of jobs.” Other reasons included doubts about securing a job despite efforts (22%), shortages in their major or field of interest (16.2%), and a dearth of positions with suitable wages or working conditions (13.6%).
Industry insiders note that companies, grappling with heightened uncertainties due to domestic and external variables, are struggling to finalize even next year’s investment plans—a situation reflected in the job market. A recent FKI survey of the top 500 domestic companies by sales revealed that 59.1% have no or undecided investment plans for next year. A source from the business community stated, “Hiring is a lagging indicator of investment. It’s impossible to increase hiring when companies haven’t even set next year’s investment plans.”
Record-Breaking Scholarships: ‘Palliating Youth’
Amid this, the government is deploying a record 4 trillion Korean won in scholarships to appease “youth sentiment.” According to data received by this newspaper from the Korea Student Aid Foundation, the government allocated 3.9926 trillion Korean won for the National Scholarship Type 1 (household income-linked) this year—the largest ever—marking a 12% increase from the previous year. The number of beneficiaries also surged to 1.98 million (combined for the first and second semesters), a 25.3% rise from last year.
The scholarship scale expanded despite a declining school-age population because the government broadened both eligibility and amounts. The National Scholarship categorizes students into 11 income brackets and distributes funds accordingly. Until last year, beneficiaries were limited to the bottom nine income brackets, covering basic livelihood recipients, near-poor households, and up to the eighth bracket. However, the Yoon Suk-yeol government announced in April last year, just before the general election, that it would expand eligibility starting in 2025. As a result, students from the ninth bracket—households with a monthly income of 12.2 million to 18.29 million won (for a family of four)—now qualify. Additionally, universities, unable to sustain the government’s 17-year tuition freeze, raised tuition fees this year, prompting the government to increase scholarship payouts from the second semester. The Lee Jae-myung government and the National Assembly also approved an 82.4 billion Korean won increase in the Type 1 scholarship budget for next year.
An education sector insider criticized, “The government is recklessly expanding the scholarship system to target youth sentiment, turning the National Scholarship into a ‘black hole’ for education budgets. Instead of one-time support, efforts should focus on fundamentally strengthening university competitiveness and creating jobs.”
