The government said Wednesday that it will establish a foundation to operate a youth employment fund proposed by President Park Geun-hye.

Last month, Park launched the "Youth Hope Fund" to create jobs for young adults as youth unemployment has become a serious social problem in Asia's fourth-largest economy.

Park became its first donor, contributing 20 million won ($17,000), and promised to give 3.2 million won, or 20 percent of her monthly pay, each month to the fund.

The president's move sparked a series of contributions, with the fund drawing more than 1.92 billion won from about 50,000 people in the first five days after its launch.

The government will first establish the foundation, and the foundation will then set up the "Youth Hope Academy" this month, officials said.

The academy will be set up in central Seoul, and it will provide job information for young adults and job training, they said. 

Creating jobs for the young generation has been one of the main goals of Park's labor reform drive as she seeks to increase labor flexibility to create more jobs for young adults amid a protracted economic slowdown.

The unemployment rate for people between the ages of 15 and 29 stood at 8 percent in August, down from 9.4 percent a month earlier and the lowest level since October last year. (Yonhap)