[The Fountain] Hungary is not guilty

Korea is in no position to dismiss the case of Hungary. Its total fertility rate was 0.84 in 2021, the lowest in the world. For your reference, the two countries’ total fertility rate was 1.24, 10 years ago.

JANG WON-SEOKThe author is a securities news reporter of the JoongAng Ilbo. Hungary is a small country in eastern Europe bordering seven countries, including Slovakia and Romania. The population is less than 10 million, and the GDP is about one-10th of Korea’s. Its trade volume with Korea is not significant, but the two countries got closer after Samsung SDI and SK On built electric vehicle battery plants there.

There is also a heartbreaking connection with Korea. In May 2019, a cruise ship carrying Korean tourists sank in the Danube River in the capital of Budapest. The incident claimed 27 lives.

Hungary has appeared in the news again. Na Kyung-won, vice chairman of the presidential Committee on Low Birthrate and Aging Society, mentioned the Hungarian model. At the new year’s meeting on Jan. 5, she said, “There is a low-interest loan system, but it is not enough. I am looking into whether a certain portion of the principle can be written off more drastically, depending on the birth.”

Hungary has been using this method as one of the measures to cope with its low birth rate since 2019. The government will lend up to 10 million forint ($27,000) for those planning to have children. It is about two years’ salary for a local worker. If he or she has a child within five years, they are exempt from interest. One-third of the loan is written off if they have two children, and the entire loan is written off for three or more children. There is a plan to exempt income tax for life for having four or more children.

Hungary is known for its aggressive policy for tackling the low birth rate. Notable examples are student loan reductions for having children, three years of parental leave, and child care subsidies. They were effective. The total fertility rate, which fell to 1.24, rose to 1.52 in 2020, according to the OECD. The rate has recovered to the mid-1990s level. In September, shortly after implementing the principal write-off plan, the number of marriages increased by 20 percent from a year ago. It remains to be seen how it will be reflected in the fertility rate, but the policy was effective for the moment.

Of course, it is not something to follow blindly. But Na didn’t say the Hungarian model will be implemented right away. Nevertheless, attorney Shin Pyeong, a member of the conservative People Power Party (PPP) called her “a muddle-headed official” while Daegu Mayor Hong Joon-pyo attacked her for “trying to stand out for once.” In the end, Na resigned from the post.

The reason for the PPP to dislike the motion seems clear: the presidential office simply does not like her running for chairmanship of the party. But Korea is in no position to dismiss the case of Hungary. Its total fertility rate was 0.84 in 2021, the lowest in the world. For your reference, the two countries’ total fertility rate was 1.24, 10 years ago.