Economic Development Cooperation Fund

The Government of Korea established the Economic Development Cooperation Fund (EDCF) on June 1, 1987 with the purpose of promoting economic cooperation between Korea and developing countries.

Drawing on Korea’s own development experience over the years, the EDCF assists partner countries by providing funding for their industrial development and economic stability.
The highest policy-making authority of the EDCF is the Fund Management Council, which is composed of 12 members, most of whom are ministerial-level government officials. The direction of EDCF operations and the assumption of principal policy-making responsibilities rest with the Ministry of Strategy and Finance(MOSF), which also coordinates policy matters with other relevant ministries.

Entrusted by the MOSF, the Export-Import Bank of Korea(Korea Eximbank) is responsible for the administrative operation of the EDCF, including appraisal of project, execution of the loan agreements, and loan disbursements. Other duties include principal/interest payments collection, project supervision, and ex-post evaluation of project operations.

In recent years, the accumulated external debt and budget deficits of partner countries have spurred the need for various types of financing. Thus, the EDCF provides several types of lending programs to meet developing countries’ diverse needs. Of these lending programs, the Development Project Loans and Equipment Loans for infrastructure building, detailed below, account for the largest portion to date.atural resources.