Korea Eximbank and IFC promoting 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 a virtual ceremony, Bang Moon-kyu, the Chairman and President of Korea Eximbank, and Philippe Le Houérou, CEO of IFC, signed the MOU from Seoul and Washington D.C., respectively.
“This MOU will enable Eximbank and IFC to contribute to the sustainable recovery of developing countries post-COVID-19,” said IFC CEO Philippe Le Houérou. “It will allow us to jointly provide sustainable and scalable private sector solutions by financing projects in new sectors, as well as in frontier markets across all regions.”
The Chairman and President of Korea Eximbank, Bang Moon-kyu, said, “While expanding joint projects with IFC, Eximbank will accelerate efforts to overcome the current crisis and spearhead financial and industrial innovation to underpin growth momentum of the Korean economy.”
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.