Presidential Office Responds to Na Kyung-won's 'Loan Forgiveness at Childbirth' Remarks, Citing "Significant Difference from Government Policy" (Update)

Vice Chairman announced childbirth-linked loan financial support at previous day's press briefing
Presidential Office directly refutes controversy... "Unrelated to government policy"

[Asia Economy Reporter Baek Kyunghwan] On the 6th, the Presidential Office stated that the debt forgiveness policy upon childbirth announced by Na Kyung-won, Vice Chair of the Low Birthrate and Aging Society Committee, is a "personal opinion" and "significantly differs from the Yoon Seok-yeol administration's stance." Vice Chair Na announced a policy linking childbirth with newlywed loans, forgiving interest and principal upon childbirth, at a press briefing the previous day.

On the same day, Ahn Sang-hoon, Senior Secretary for Social Affairs, held a briefing at the Yongsan Presidential Office building in the afternoon and said, "The direction of forgiving or exempting loan repayments based on the number of children, as stated by Vice Chair Na at yesterday's briefing, is a personal opinion," adding, "It is unrelated to government policy. Rather, it significantly differs from the Yoon administration's stance."

It is unusual for the Presidential Office to directly refute announcements made by government ministries or related committees. A Presidential Office official explained, "After yesterday's press briefing, media reports surged, and questions from related ministries flooded in, so the matter was reported to the President as an important agenda," adding, "We said we would organize the government's position as just now, and the President instructed to respond appropriately."

Earlier, on the 5th, Vice Chair Na met with reporters at the Korea Press Center in Jung-gu, Seoul, and said, "There is a system that lowers interest on loans such as jeonse deposit loans upon childbirth, but a more bold policy is needed," adding, "We are looking into whether it is possible to forgive a certain portion of the loan principal when a child is born." Vice Chair Na cited the Hungarian childbirth support model as an example. In Hungary, when the first child is born, the interest on marriage loans provided at ultra-low rates is forgiven; for the second child, half of the principal is forgiven; and for the third child, the entire principal is forgiven, according to reports.

Some interpreted the Presidential Office's action on this day as an attempt to manage the pro-Yoon Seok-yeol faction candidates for party leadership. Reporters asked, "Is the briefing related to Vice Chair Na's candidacy for the party convention?" A senior Presidential Office official drew a line, saying, "I don't think this is a matter to discuss politically."

This content was produced with the assistance of AI translation services.