Embargo Jan. 12, 2010 Release Date Jan. 12, 2010
Contact Information Kim Young Min, Spokesperson for Foreign Media; 02-2150-2450
2010 Economic Development Cooperation Fund Project
The Korean government drew up its Economic Development Cooperation Fund (EDCF) project for 2010 to increase its annual volume of assistance and enhance its aid effectiveness, as the country became a member of the OECD Development Assistance Committee (DAC) in December 2009.
To this end, total loan disbursements will rise 51.6 percent to KRW470 billion in 2010 from KRW310 billion in 2009. Total commitments to be carried out in three to four years will stand at KRW1.25 trillion, similar to the previous year’s KRW1.269 trillion. The ratio of ODA (Official Development Assistance) to GNI (Gross National Income) will be increased from 0.11 in 2009 to 0.13 in 2010 and to 0.15 in 2012.
The largest share of the EDCF assistance will continue to go toward Asia, but the loan will be selectively expanded to some major countries in Africa and the Middle East.
The government will focus on support for green growth in the agricultural sector to deal with global issues such as climate change and food shortages. It will also join the effort to eliminate poverty by helping developing countries build transportation infrastructure, improve public health services, and nurture human resources. The EDCF assistance for green growth will be expanded from KRW1.2 trillion in 2009 to KRW1.7 trillion in 2012.
In addition, the government will provide support for large projects worth more than US$50 million to help developing countries boost their economies, which in turn, could help Korean companies have access to overseas markets. For example, US$200 million in total from 2008 to 2009 went to the construction of the Hanoi-Haiphong highway in Vietnam, which was the biggest single loan in EDCF history. Also, the government will cooperate with international development organizations to join the large cross-border project such as the Mekong basin development.
Country Assistance Strategies (CAS) will be promoted to facilitate the economic development of developing countries; in 2008, Korea provided advice and suggestions for the Dominican Republic regarding the establishment of a trade-investment promotion agency and an export-import bank through the Knowledge Sharing Program (KSP).
Over the mid-to long-term, Korea will continue to increase the volume of ODA, and develop its own assistance model based on its unique experience in economic development, as well as act as a bridge between developed and developing countries.
MINISTRY OF STRATEGY AND FINANCE
