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The Republic of Korea (ROK) operates its official development assistance (ODA) system through a three-tier structure. The Committee for International Development Cooperation is responsible for ODA policymaking and coordination. Supervising institutions include the Ministry of Economy and Finance (MOEF), which oversees concessional loans and multilateral aid to development banks, and the Ministry of Foreign Affairs (MOFA), which manages grant aid and multilateral aid to the United Nations and other international organizations. Implementing agencies consist of the Export–Import Bank of Korea (KEXIM), which MOEF entrusts to implement the Economic Development Cooperation Fund, i.e., the ROK’s bilateral concessional loans fund, and the Korea International Cooperation Agency, which implements the grant aid and technical cooperation under MOFA’s guidance.
Collaboration between ADB and the ROK government is through MOEF and KEXIM. Other collaborating ministries and agencies include the Ministry of Agriculture, Food and Rural Affairs; the Ministry of Trade, Industry and Energy; the Korea Meteorological Administration; the Korea Energy Agency; and the Public Procurement Service.
In 2024, the ROK transferred $20.5 million to the ADB-administered Republic of Korea e-Asia and Knowledge Partnership Fund, among which $3 million was committed to three trust funds: Asia Pacific Project Preparation Facility, Central Asia Regional Economic Cooperation (CAREC) Climate and Sustainability Project Preparatory Fund (CSPPF), and Nonsovereign Revolving Trust Fund. The CSPPF will help address the financing gaps in achieving climate change goals through the preparation of bankable and climate-resilient regional projects for CAREC countries.
The ROK is a founding member of ADB and has, since 1966, committed $792 million to ADB special funds. Of this commitment, $706.9 million is for the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income, developing member countries to help reduce poverty and improve the quality of life.
7 November 2024
The Republic of Korea today signed a memorandum of understanding with ADB, earmarking $2 billion in cofinancing for ADB sovereign operations over the next 3 years.
4 May 2024
Donors and ADB have agreed to a replenishment of $5 billion for ADB’s Asian Development Fund 14 and Technical Assistance Special Fund 8. The commitment was made during ADB’s 57th Annual Meeting.
3 May 2024
Donors and ADB have agreed to a replenishment of $5 billion for ADB’s Asian Development Fund 14 and Technical Assistance Special Fund 8. The commitment was made during ADB’s 57th Annual Meeting.
In Rajasthan, a fast-developing state, smart urban planning in support of culture-focused tourism is seen as a way for its population to regain livelihoods lost due to the COVID-19 pandemic.
As climate change impacts national budgets and economies, ADB and the Republic of Korea are helping Central Asian countries strengthen their public financial management systems to fight climate change more effectively.
Through a technical assistance, ADB and partners Japan, the Republic of Korea, and the People’s Republic of China are helping mitigate the impact of the pandemic through community-led activities that directly respond to the needs of poor people.
With grant support from the People’s Republic of China, Ireland, Japan, the Republic of Korea, and the Regional Malaria and Other Communicable Disease Threats Trust Fund, ADB is scaling up efforts to help its developing member countries’ health and economic systems respond to COVID-19 outbreaks and future pandemics.
With ADB-managed grants from High-Level Technology Fund and the Republic of Korea e-Asia and Knowledge Partnership Fund, Armenia is establishing the foundation for efficient data management designed to encourage investments, enhance transparency and e-government capacity, and ultimately spur economic growth.
A results-driven project is closing the skills gap through sector-wide reforms focused on improving technical and vocational education and training.
ADB and the Republic of Korea collaborated on several knowledge products and events, including the following:
ADB, in partnership with the United States Agency for International Development and the Korea Energy Agency, welcomed clean energy practitioners from across the region to the 19th edition of the Asia Clean Energy Forum 2024, held in Manila from 3 to 7 June 2024.
The ADB Institute, in partnership with the National Health Insurance Service, organized a 4-day training workshop from 16 to 19 April 2024, tailored for senior government officials from ADB developing member countries. By facilitating a platform for knowledge exchange and drawing on the Republic of Korea’s successful Universal Health Coverage model, participants gained valuable insights into effective strategies, policies, and implementation.
On 2–5 July, ADB’s Green Finance Hub and the Transport Sector Group delivered the first phase of a capacity-building initiative for e-mobility and green urban projects in Seoul, Republic of Korea.
The 2024 APN Conference, co-organized by the Korea Development Institute, ADB, ADB Institute, and the World Bank, explored diverse facets of public–private partnerships from 22 to 23 October 2024, focusing on sustainability, resilience, private capital mobilization, climate-smart development, and unsolicited project proposals.
Active trust funds are those a) with ongoing projects; or b) with no active projects but have remaining funds.
The Republic of Korea contributes to ADB’s development initiatives through two key avenues: Cofinancing and Special Funds.
ADB and the Ministry of Economy and Finance (MOEF) first signed the memorandum of understanding (MOU) for 2008–2010. The Republic of Korea (ROK) earmarked $500 million in cofinancing for over 3 years. The MOU was renewed in 2011 with the ROK’s earmarked amount of $550 million for another 3 years. In 2015, the MOU was renewed again with the ROK’s earmarked amount of $600 million, then in 2018 with $650 million, and in 2021 with $700 million earmarked for the next 3 years. The latest renewal was signed in May 2024, earmarking $2 billion in cofinancing for sovereign operations until 2027. This funding will support climate change–related projects, as well as initiatives in transport, energy, agriculture, education, governance reform, health, and information and communication technology. Of this amount, $800 million is earmarked for projects in India. The collaboration also aims to support public–private partnerships, and strengthen technical assistance and feasibility studies support through the ADB-administered Republic of Korea e-Asia and Knowledge Partnership Fund.
Sovereign Cofinancing. In 2024, the Republic of Korea (ROK) contributed to sustainable development and regional cooperation through loan cofinancing for several key projects. In the Philippines, the ROK committed $904.4 million to construct a climate-resilient 37.5-kilometer expressway along the country’s largest lake, enhancing regional connectivity. In Bangladesh, the ROK committed $100 million to strengthen the nation’s social protection system. In addition, the ROK provided $50 million to Cambodia to help the government leverage private sector investments, aiming for higher, inclusive, and sustainable growth to improve the lives and livelihoods of its citizens.
Nonsovereign Cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported over 1,540 transactions valued at $921.7 million with banks domiciled in the ROK from 2009 to 2024. During the same period, the TSCFP supported over 4,490 Korean exports and/or imports valued at $4.2 billion. In 2024 alone, the TSCFP supported 5 transactions valued at $35.5 million with banks domiciled in the ROK and supported 283 Korean exports and/or imports valued at $228.3 million. Exports and/or imports were mainly to/from Viet Nam, Bangladesh, and Uzbekistan. Underlying goods involved mostly raw and non-energy commodities, food and agriculture-related goods, as well as automotive and parts.
In the context of the upcoming ROK’s presidency of the Asia-Pacific Economic Cooperation (APEC), the TSCFP and the Australian Department of Foreign Affairs and Trade engage with the ROK and provide capacity-building support on trade digitalization to APEC member economies in 2025.
