South Korea to raise 2024-2026 loans for developing nations to 13.8 tln won
South Korea plans to set aside 13.8 trillion won (US10.39 billion) in low-interest rate loans for developing countries' projects for green growth, digital transition and other purposes by 2026, which will also include reconstruction projects in Ukraine, the finance ministry said Wednesday, Yonhap reports.
Under the Economic Development Cooperation Fund (EDCF), South Korea plans to earmark 4.5 trillion won worth of new projects this year, along with 4.6 trillion won and 4.7 trillion won in 2025 and 2026, respectively, according to the Ministry of Economy and Finance.
The three-year budget marked a 17.9 percent increase from 11.7 trillion won that the country presented last year for the 2023-2025 plan.
South Korea launched the EDCF program in 1987 to help other developing countries with their basic infrastructure and has sought to become one of the world's top 10 contributors in the global development aid field.
The country was the 16th-largest contributor in 2022.
Last year, South Korea approved 3.7 trillion won, a record amount, for 22 projects in 14 nations.
According to the three-year plan, Asia will take up around 60 to 70 percent of the envisioned projects, and African nations will take up some 20 to 30 percent, the ministry said, adding that South Korea seeks to further extend support for countries with great potential in Africa and South America.
The loans will focus on responses to climate change, digital transition and public health, according to the ministry.
Of major projects, South Korea plans to push for clinching an agreement to set details of projects worth US$2.1 billion in war-torn Ukraine meant to help its reconstruction efforts.
South Korea also plans to sign new deals with India, Bolivia and the Ivory Coast, according to the ministry.
"Under the EDCF program, the government will boost cooperation with nations that are crucial for our efforts to ensure stable supply chains. We will also work more closely with the United States, Japan and other major contributing nations," a ministry official said.
