S. Korea to better meet developing nations' demand for major infra programs with EDCF loans

▲ This photo, provided by the finance ministry on April 26, 2023, shows its building at the government complex in the central city of Sejong. (PHOTO NOT FOR SALE) (Yonhap)

S Korea-EDCF plan

S. Korea to better meet developing nations' demand for major infra programs with EDCF loans

SEOUL, Jan. 25 (Yonhap) -- South Korea will draw up a longer-term plan on how to operate low-interest rate loans for developing countries to better respond to their need for major infrastructure projects, the finance ministry said Thursday.

The plan was announced during an inaugural meeting of a state advisory committee on the Economic Development Cooperation Fund (EDCF), which was established to collect opinions from experts on the funding amid changing circumstances of the global development cooperation, according to the Ministry of Economy and Finance.

The government will soon put forth a plan on the loans management for 2024-2026 after factoring in demand from developing nations for large-scale infrastructure projects.

The plan will also focus on how to improve the quality of ongoing projects and to better support South Korea's external strategies.

During the meeting, experts called on the government to enhance support for developing nations in addressing climate challenges and seek ways of reducing the period needed to execute the EDCF loans, the ministry said.

Last year, the ministry pledged to set aside 11.7 trillion won (US$8.75 billion) for the EDCF through 2025, including 3.9 trillion won worth of new projects in 2024.

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 15th-largest contributor in 2021.

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