The monthly "youth employment promotion subsidy" of 500,000 won (US$440) will be paid for up to six months to unemployed people aged 18 to 34 who have graduated from or dropped out of secondary schools, universities or graduate programs within two years, the ministry said.

Only those who belong to households earning less than 120 percent of the nation's median income, or 5.54 million won a month in terms of a four-person household, will be eligible for the new subsidy, it said, adding that applications will be accepted from March 25.