This study aimed to systematically diagnose the outcomes of the Seoul youth allowance, examine the role and functions of the youth allowance that align with the changing environment and policy demands of the youth, and develop short-term and long-term improvement strategies for the youth allowance. In this study, we diagnosed the outcomes of the youth allowance, a representative youth policy in Seoul, and formulated improvement strategies. We assessed the implementation status of the youth allowance in Seoul and quantitatively evaluated its planning, execution, assessment, and feedback stages. Additionally, through expert forums involving young individuals, youth stakeholder meetings, and expert surveys, we examined the social and policy significance of the youth allowance. We gathered opinions on policy improvement directions and challenges to solidify the youth allowance as a policy that substantially aids the lives of unemployed youth. Finally, based on the research findings, we proposed strategies for improving the Seoul youth allowance.