Nearly half of the youth population in Seoul are now living in poverty

According to an article by the Korea Herald, a comprehensive study conducted by the Seoul Metropolitan Government and the Seoul Institute reveals a concerning level of financial distress among the youth in Seoul. According to the 2022 Seoul Young Adult Panel Study, over half (55.6%) of the city's youth are experiencing asset poverty, defined as the lack of sufficient liquid assets to cover living expenses for three months.

The study shows a more pronounced asset poverty rate of 62.7% among young adults living independently, 7.1 percentage points higher than the broader youth demographic. Additionally, the personal income poverty rate stands at 37%, with the highest incidence (73.4%) among individuals aged 19 to 24 and the lowest (14.2%) among those aged 35 to 36.

The survey, which included 5,083 adults aged 18 to 35, reveals that 28% of young adults in Seoul are struggling with inadequate living expenses. In response to financial challenges, 41.2% relied on parental support, 17.7% had to cancel their savings or deposit accounts, and 11% turned to loans from financial institutions. A significant 10.4% find it challenging to identify a viable solution to their financial issues.

The study also underscores the impact of high youth unemployment rates, currently at 45.4% according to Statistics Korea, as a major factor in the rising poverty levels. Alongside economic challenges, the study highlights mental health concerns, with 34.7% of young adults in Seoul suffering from depression, exacerbated by unemployment after graduation (44.3%) and layoffs (42%).

Experts like Professor Lee Bong Ju from the Department of Social Welfare at Seoul National University and Professor Shin Gyeong Ah from the Department of Sociology at Hanlim University have raised alarms about the potential long-term effects of sustained youth poverty. They stress the need for increased government intervention to address employment issues and reengage the disengaged youth in the labor market.

The study further reveals that while 47.5% of young adults live with their parents, 34.3% live alone. The average anticipated age for achieving financial independence is 30.6 years, with variations across different age groups. Additionally, the survey indicates that 87% of respondents are single, with 46.5% expressing a desire to marry and 19.1% indicating no intention to do so.

These studies shed light on the multifaceted financial and mental health challenges faced by Seoul's youth. The findings underscore the urgency for comprehensive policy measures and social support systems to address these pressing issues.