Korea Eximbank and IFC join hands to promote sustainable recovery in developing countries

IFC and the Export and Import Bank of Korea have signed a new memorandum of understanding (MOU) which will expand their collaboration in developing countries and link Korean firms with more opportunities overseas. The agreement will focus on creating new jobs, promoting smart cities, boosting health care, and other areas that are key to ensuring a sustainable and resilient recovery from COVID-19.

As part of this MOU, the two signatories will jointly identify and finance projects in developing countries— including those in Southeast and Central Asia—in line with Korea’s New Southern Policy and New Northern Policy. The focus areas include initiating projects to expand private sector-led solutions in emerging markets and enhancing knowledge and information sharing.

In sync with Korea’s development vision, this MOU serves as an underlying foundation to expand the market for Korean goods and services in the mid to long term, while growing the economic size of developing countries.

Since 2008, Korea Eximbank and IFC have jointly supported several infrastructure projects, which represent a combined investment of $11.2 billion in developing countries. Last year, the two institutions provided approximately $300 million to co-finance a $650 million Nepali hydropower plant project, built and operated by a Korean company. Currently, they are reviewing a purification plant in Indonesia.

IFC works closely with the government of Korea and Korean financial institutions to provide financing and advice to support private sector investments in developing markets. Since re-establishing its presence in Korea in 2014, IFC has provided financing—worth over $6.5 billion of long-term commitments—for projects involving Korean partners and banks.

Original source: IFC