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| Prime Minister Han Duck-soo speaks during a Cabinet meeting at the government complex in Sejong, which was connected via video streaming with the government complex in Seoul, Tuesday. Yonhap |
By Lee Hae-rin
Prime Minister Han Duck-soo said Wednesday that he does not agree with a proposal to resolve Korea's persistently-low birthrate by writing off the debts of newlywed couples who have babies. The idea was proposed by Na Kyung-won, vice chair of the Presidential Committee on Aging Society and Population Policy.
During a dinner meeting with reporters, Han said he expressed his objections after Na had briefed him on the proposed plan to spur the birthrate before announcing it at a press conference on Jan. 5.
Na, a former four-term lawmaker of the ruling conservative People Power Party (PPP), announced that the committee considers adopting a policy similar to the "baby-expecting loan" of Hungary, an undertaking to tackle the country's demographic crisis where the government provides incremental financial and housing support to newly-wed couples when they have children.
"The government policies to support newlyweds and young generations to get housing and rental fees are not enough," Na said during the press conference, explaining that the government should allow couples to take out a 40 million-won ($32,000) loan when getting married. According to the plan, similar to the Hungarian policy, the loan should become interest-free after the birth of a couple's first child. Then the loan is partially and fully written off once their second and third child is born, respectively.
Han said that Na's proposal to write off loans to couples having babies was "difficult to agree on" in terms of its effectiveness, citing that the Ministry of Land, Infrastructure and Transport already plans to announce a set of measures to offer low-interest loans and housing benefits for young people.
Han explained that he had suggested Na consult with the ministers and chairperson of the committee beforehand without announcing it.
Han made further comment regarding China's suspension of its short-term visa issuance for Koreans saying it is not retaliatory and the government will try to resolve the issue.
"I don't think it's retaliation," the prime minister said, "When Korea first suspended short-term visa issuance on arrivals from China last month and set a limit to increasing the flights (between the two countries), the government had enough communication with the Chinese authorities."
He said that the government will try to resolve the issue through communications, bearing people's safety as the highest priority.
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