EFFORTS TO ENCOURAGE CHILDBIRTH

[Anchor Lead]

Some local governments in Korea are offering groundbreaking benefits in a bid to increase their populations. One of them is Changwon City, which offers 100 million won loans to newlyweds and writes off the debt when they have three children. However, women's rights activists say the measure is outdated.

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Changwon is set to be designated a "special city" in 2022, as its population stayed above one million in recent years. The city plans to provide 100 million won loans to newlyweds while cutting their loan interest and principle for each child born. When a couple has their first child, the family becomes exempt from loan interest. When their second child is born, 30 percent off their loan principle is written off. Couples that have their third child are exempt from paying off their loan altogether.

[Soundbite] HUH SUNG-MOO(CHANGWON MAYOR) : "We seek to provide help to young people as they get married and have children so that they can make a new start and pursue their dreams."

Changwon City estimates the measure would cost 4 billion won a year in the next decade. The local government plans to secure funds by adjusting the existing childbirth subsidies and setting aside a special fund in the long term.

[Soundbite] AHN BYUNG-OH(CHANGWON CITY GOVERNMENT) : "We hope to attract at least 10,000 new residents in the next five years as a direct and indirect result of this policy."

Women's rights groups blasted the move. They say it ostracizes singles as well as couples that can't have children for health-related or financial issues.

[Soundbite] LEE KYUNG-OK(WOMEN'S PARTY) : "Some women cannot have children even if they want to, and some choose not to have them. I'm concerned this policy of giving money for having babies originated from materialism."

Over the past ten years, Chnagwon's population shrank from 1 million and 90,000 to a million and 30,000. The city's policy designed to maintain its population above one million has become a subject of controversy.