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Controversy Over Na Kyung-won's Resignation Round 2... Korean Prime Minister "Cannot Agree to Loan Forgiveness" VS "Is This Populism?"

Na Vice Chairman Reports Low Birthrate Measures to Korean Prime Minister
Prime Minister Han: "Difficult to Agree on Policy Effectiveness"
Na Kyung-won, Why Proceed with Public Disclosure Despite Government Opposition?

[Asia Economy Reporters Koo Chae-eun and Kim Young-won] Interest is focused on the background behind Na Kyung-won, Vice Chair of the Low Birthrate and Aging Society Committee, publicly revealing the 'Hungarian-style low birthrate policy' that forgives loans upon childbirth despite government opposition.


On the 11th, according to statements from the Presidential Office, the Prime Minister, and political circles, the Hungarian-style childbirth encouragement policy mentioned by Vice Chair Na in May was reported to the Prime Minister's Office and the Ministry of Economy and Finance, but the government opposed it on the grounds that the budget procurement method and budget estimation had not been carried out.

Controversy Over Na Kyung-won's Resignation Round 2... Korean Prime Minister "Cannot Agree to Loan Forgiveness" VS "Is This Populism?" [Image source=Yonhap News]

Prime Minister Han Duck-soo said at a New Year's press briefing held at the Sejong Government Complex the day before, regarding Vice Chair Na's low birthrate policy, "Vice Chair Na brought that proposal to report to me but then took it back." Han explained, mentioning various government housing policies aimed at the youth, "It is difficult to agree with the idea of giving 200 million won and forgiving (loan amounts) upon childbirth, both in terms of effectiveness and policy overlap, as Vice Chair Na suggested."


Earlier, the Presidential Office harshly criticized Vice Chair Na for expressing regret on her Facebook after the Presidential Office opposed her low birthrate policy, stating, "Despite the Prime Minister's Office clearly conveying opposition on the grounds that it does not align with the government's policy direction, she went ahead with the announcement, forgetting that she is a member of the executive branch." In particular, they pointed out, "The low birthrate policy involves tens of trillions of won in astronomical finances," and criticized, "Even the Ministry of Economy and Finance, the budget authority, strongly opposed the personal opinion announcement due to the lack of proper budget procurement methods and budget estimation, causing serious confusion among the public."


At that time, Vice Chair Na wrote on her Facebook, "Money does not make one decide to give birth, but overcoming the low birthrate without money is impossible," adding, "The financial burden is large, but the inevitability is also clear, making it an even more difficult issue." Subsequently, Na faced crossfire from the Presidential Office and pro-Yoon (pro-Yoon Suk-yeol) faction lawmakers within her party and tendered her resignation to the Presidential Office the day before.


However, Vice Chair Na resumed public activities just one day later and sharpened her stance, questioning whether her low birthrate policy was "populism." At the Dongjak District Office New Year's meeting held that morning in Seoul's Dongjak District, she said, "I proposed a plan to provide ultra-low interest long-term loans upon marriage and forgive part of the interest and principal upon childbirth, and this is called populism," and asked, "Would Na Kyung-won be populism?"


Controversy Over Na Kyung-won's Resignation Round 2... Korean Prime Minister "Cannot Agree to Loan Forgiveness" VS "Is This Populism?" [Image source=Yonhap News]

She added, "One of the ideas I considered to respond to the low birthrate was a similar system in Hungary because many people said housing was the biggest difficulty," and explained, "It is a system that former Mayor Hong Joon-pyo mentioned when he ran for the party convention."


Before stepping down from the podium, Vice Chair Na also proposed a slogan related to the low birthrate. She shouted, "For the new year, I want us to hear the sound of children crying a lot, so please call 2023 'Eung-ae' (the sound of a baby crying)," and the residents present cheered, shouting, "Na Kyung-won fighting!"


When asked by reporters about her position that day, Vice Chair Na emphasized, "I have not yet been notified whether the president has accepted my resignation, and I am not attached to any position," and said she is considering running for the party leader election at the March 8 party convention.


She added, "I am thinking about what is important for the success of the Yoon Suk-yeol government," and said, "I am deeply considering what choices would be good for the future of the People Power Party to protect South Korea's liberal democracy and build a better Korea."


Earlier, from the start of the New Year's greeting, she said, "The Yoon Suk-yeol government said it will surely carry out labor, pension, and education reforms that South Korea needs now to create stepping stones for the future," and asked, "Please strongly support the Yoon Suk-yeol government in our Dongjak District as well." She also said, "At a time when diplomacy, security, and the economy are all difficult, it is time for all citizens to unite and strongly support the Yoon government." It is interpreted that she intends to run for the party leader election without going against the so-called 'Yoon-sim (Yoon's will)' of President Yoon Suk-yeol.


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