Changwon City Lowers Bar for Parental Leave Loans with BNK Gyeongnam Bank

Reducing the Burden of Childbirth and Parenting to Overcome Low Birth Rates

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Changwon City, Gyeongnam, signed a '2021 Parental Leave Family Basic Living Fund Support Business Agreement' with BNK Gyeongnam Bank at 10:30 a.m. on the 8th in the reception room.

The city prepared this event to alleviate the economic burden, which is considered the primary cause of low birth rates and population decline, in order to reduce the burden of childbirth and childcare.

The 2021 Parental Leave Family Basic Living Fund Support Loan allows parental leave workers to borrow funds for basic living expenses.

This takes into account that even office workers on parental leave find it almost impossible to get loans from primary financial institutions.

The system is available to citizens who have lived in the city for more than one year and have been employed for more than one year, allowing loans up to 100 million KRW depending on individual credit ratings. The application period is from January 1 to December 31, 2021.

BNK Gyeongnam Bank stated, "We are pleased to relax the loan criteria for parental leave workers in Changwon City and to join efforts to overcome the low birth rate," adding, "We will actively cooperate with future low birth rate policies."

Mayor Heo Seong-mu of Changwon said, "During parental leave, income tends to decrease while expenses increase, causing significant economic burden," and added, "I hope this agreement will help citizens reduce the economic burden associated with raising children."