The government will take drastic measures to tackle Korea’s demographic crisis of its falling birthrate and rapidly aging society, said Na Kyung-won, head of the presidential committee on Aging Society and Population Policy, who floated the idea of writing off loans for married couples who give birth to children.

“Now is the absolute last chance to take action on the imminent demographic crisis. Responding and adapting to the demographic change is a matter of the nation’s survival and sustainability,” Na, a four-term lawmaker, said during a press conference held in Seoul, Thursday.

Korea is expected to become an ultra-aged society by 2025, in which 20 percent of the population is aged 65 and over. The country’s fertility rate, which has been the lowest in the world for several years, is showing no signs of rebound with the latest figure standing at 0.79.

Na told reporters that her committee has recently come up with a set of measures to encourage marriage among the young generations, focusing on increasing financial and housing support.

“Recent surveys show that economic instability and housing issues are the main reasons why young people are reluctant to get married,” she said. “The Ministry of Land, Infrastructure and Transport is offering low-interest loans and housing benefits for newlyweds, but that’s not enough. So we are looking at whether we can provide bolder support such as writing off some amount of loans. We will continue discussions with the land ministry.”

The presidential committee is closely looking at what is called the “baby expecting loan” carried out by the government of Victor Orban in Hungary, a preferential loan offered to heterosexual married couples. The government offers a 10-million-forint ($26,800) loan, and for couples that have one child in a five-year period, the interest on their loan is suspended forever and monthly repayments are halted for three years. The birth of a second child allows them a further three-year pause on repayments and the loan is written off upon the birth of a third child

Na also stressed that the government will ease regulations in regards to immigration policies so as to attract more foreign workers to the country. The Ministry of Justice will create a new visa under the E-7 category ― called the E-7-S visa ― to allow foreign nationals to apply for jobs that are not designated by the E-7 visa. The ministry will also offer more employment options for international students.

During Thursday’s conference, Na declined to give a direct response as to whether she will run for the ruling People Power Party (PPP) leadership contest in March. The political heavyweight has been leading polls conducted among party supports.

Amid growing anticipation that she will make a decision by the end of this month as candidate registration begins in early February, Na said, “If I declare my bid, I would have to leave my current position. But I believe I will still be able to provide support in carrying out demographic policies.”

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