The younger generation, entrusted with shaping the future of South Korea, is currently ensnared in the grip of poverty. According to surveys conducted by entities such as Statistics Korea, 40% of Korean youth find themselves in the category of impoverished individuals, with incomes falling below 50% of the median. The reduction in job opportunities due to employment cuts has left the youth deprived, and the widening wealth gap has further robbed them of fair competition opportunities. Unlike child and elderly poverty, youth poverty tends to be wrongly attributed to individual issues. It is crucial now to recognize that youth poverty is not merely an individual concern but a societal problem that needs acknowledgment in order to rekindle the flames of South Korea’s future growth. ChosunBiz has examined the challenging lives of these diminishing youth, exploring potential alternatives to reignite their aspirations. [Editor’s Note]
“When I had my blood drawn for the first time, it was a bit scary. But honestly, not having enough money for daily expenses was even scarier,” said Lee Kangcheol (pseudonym, 27), who spent two years after graduating from college preparing for employment. Towards the end of 2022, he took part in a new drug clinical trial conducted by a pharmaceutical company. Using a part-time job site, Lee easily applied for a bioequivalence test. During his hospital stay, Lee spent most of his time having blood drawn about 10 times a day, with his legs straightened and on an empty stomach. He managed this hospital schedule every 2 nights and 3 days, repeating the process every 4 cycles. In return, Lee received a payment of 1.6 million won.
“I got a call after posting my resume on a job site. They said it was just a simple errand job, and I had no idea it was a crime,” shared Jeong Minkyu (alias, 32), who left his job of three years due to the COVID-19 pandemic. Early 2022, Jeong was investigated as a suspect in a voice phishing scheme by the police. Two years after uploading his resume to a job site, a company contacted him, claiming it was for a straightforward errand job, collecting payments from business partners. Tempted by the promise of earning 300,000 won per transaction for a simple task, Jeong agreed. However, he later found out that his role was part of a voice phishing operation, unknowingly becoming involved in criminal activity.
In recent times, an increasing number of young adults are opting for part-time jobs that come with potential risks, such as clinical trials with fatal outcomes or involvement in crimes like voice phishing. The age group most drawn to these jobs is in their 20s and 30s, often motivated by financial struggles. While discussions on poverty traditionally revolve around children and the elderly, the financial challenges faced by young adults were once seen as a temporary phase during their move towards independence. However, with the current job market instability and layoffs, the issue of poverty among this generation, considered the future workforce, is gaining prominence.
At the core of the financial challenges faced by young adults lies the burden of debt. Continual high-interest rates, coupled with rising living costs and job market struggles, along with a decline in real income, make it increasingly difficult for them to build wealth. In today’s landscape, young adults often find it challenging to engage in social life without incurring debts. University students, lacking access to tuition-free education, resort to taking out student loans. Those aiming to establish assets often take on loans for investments, even if it means accumulating debt. Young individuals lacking a stable income are turning to loan sharks.
“Because prices have gone up a lot recently, just having lunch once costs over 10,000 won. With my part-time job pay, it’s a bit tough to handle living expenses, so I ended up taking a 2 million won loan for that,” shared Kim Minjeong (alias, 23, female), a university student working 25 hours a week as a server in Dongdaemun-gu, Seoul. Recently, she received both a student loan and a living expense loan from the Korea Student Aid Foundation. Her monthly income, including minimum wage and overtime pay, is 986,000 won. However, this isn’t enough to cover university tuition and monthly living costs like rent, transportation, and meals. Therefore, Kim is using the student loan for tuition and the living expense loan to make ends meet.
A significant number of young adults express concerns about getting caught in the cycle of debt, a journey often starting with student loans. As they embark on their careers and manage student loan repayments, a financial gap emerges between those with parental support during college and those without. For students who’ve also taken out living expense loans, repaying these loans becomes a challenge, leading some to seek high-paying, high-risk part-time jobs or consider loans for investments.
