Seoul City on Thursday announced plans to give a monthly allowance to unemployed youth as part of its efforts to better bridge them to the labor market.

Seoul Metropolitan Government said that it would offer 500,000 won ($440) a month starting from next year for unemployed young people aged between 19 and 29 who are in the low-income bracket.

The city will provide the subsidy to 3,000 individuals on a trial basis for up to six months and expand the number to 15,000 over the next five years. A total of 9 billion won will be injected in the first year, officials said.

This is part of the city’s five-year youth support plan that will be pushed from next year. It encompasses support for housing, work and activities for the youth.

“It is aimed at providing a stepping-stone with minimum financial support for the unemployed youth who have failed in entering the labor market or in getting work opportunities due to low self-esteem,” said Seoul City official Jun Hyo-kwan, who heads the youth support project.

About 35 percent of those in their 20s in the capital, or 500,000 individuals, are part-time workers, those postponing school graduation for job hunting or those not in education, employment or training, officials said.

Concerns, however, remain over the efficacy of the plan and potential cases where the measures could be abused.

While the city said it would select the 3,000 individuals based on the application review which would ask about their future career plans, it has not been determined so far how the city will evaluate and screen the applicants. Planning is still underway, the city added.

“I’m optimistic of the city’s attempt and efforts to support the unemployed youth, but it will be crucial for the city to come up with specific plans over how to raise the efficacy of the project, including the screening process of the beneficiaries,” social welfare professor Han Chang-keun at Sungkyunkwan University told The Korea Herald.

The city may also face obstacles in implementing the project as the Welfare Ministry considers the city’s scheme requires discussion with the central government over its relevance to various welfare laws. The city, however, claimed the project can be pushed under the city’s independent ordinance.

By Lee Hyun-jeong (rene@heraldcorp.com)