Seoul announced that the metropolitan city registered its youth allowance regulation for unemployed youth as a blockchain-based system.
On 13th, Seoul provided the early allowance to 892 young people who have lost their part-time jobs due to the COVID-19 outbreak. Youth Allowance regulation allocates job-search and social-participation fees to the young population (19yrs to 34yrs) who have been unemployed more than 2 years after the graduation. Total of 26,779 people signed up since last month, approximately 3.6 times more than last year.
Seoul explains the increase in the application is caused by: ▲the increase in the unemployment rate due to COVID-19, ▲the promise of universal support (expected to aid up to 100,000 by 2023), and ▲ the minimized registration documents along with the simplified application process.
Blockchain technology was used to minimize the registration documents and to simplify the overall application process. Formerly, young people had to submit their application directly to the website; however, with the construction of the blockchain-based system, one can apply with only the social security number and name after consenting to the provision of the personal information.
“Before, the applicants had to submit the documents directly, but this new system uses the ‘administrative information sharing system’ that is linked to the Ministry of Public Administration and Security of Seoul Metropolitan Government” so that “you can simply verify the registration of the employment insurance, unemployment benefits aids and so on with blockchain technology, ” says the administrator of Seoul Smart-City project.
This time the allowance is ‘swift’ youth allowance. Seoul temporarily took such measures to countermeasure the sharp increase of unemployment rate due to COVID-19. A total of 1155 people applied last month and aids were given to 892 people, and 883 people this month.
This year, Seoul expects to provide the allowance aid up to 30,000 young people who are unemployed. In an active defense to COVID-19 unemployment problem, Seoul will distribute the allowance to everyone who satisfies the criteria (i.e. unemployed for more than 2 years since the graduation, median income level less than 150%, not a participant of another city project, etc.). The selected will receive a youth vitality program along with a monthly payment of 500,000 Korean won per month, for up to 6 months.
