The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Kim Yong-hwan, “Korea Eximbank), the trustee of Korea’s Economic Development Cooperation Fund (EDCF)*, announced on August 27 that it held a joint seminar with three other aid agencies ？ the Export-Import Bank of China (CEXIM), Japan International Cooperation Agency (JICA), and Thailand’s National Economic and Development Authority (NEDA) ？ at Seoul Conrad Hotel on August 26.

* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. As the trustee of the fund, Korea Eximbank is responsible for its day-to-day operations such as project appraisals and loan disbursements.

Over 20 senior officials from the four aid agencies participated in the seminar, including Senior Executive Director Shim Seop of Korea Eximbank, Director Kunio Okamura of JICA, Vice President Perames Vudthitornetiraks of NEDA, and Director General Wei Ran of CEXIM.

Senior Executive Director Shim of Korea Eximbank said in his welcoming remarks, “By bringing together the experiences of Japan, a traditional donor of ODA, with those of emerging donors such as Korea, China and Thailand, this seminar has helped establish a genuine platform for identifying opportunities for financial cooperation regarding ODA projects in Asia.”

Held under the title of ‘Cooperative Measures for Financing Development Aid Projects within Asia’, the seminar was meant to foster debate among the four aid agencies on tangible financial cooperation measures.

Such cooperation is all the more pressing given the difficulty donor countries face in securing additional funding for development cooperation due to the global economic downturn, while demand for infrastructure development continues to surge in Asian developing countries.

Participants conducted in-depth discussions on how to tap newly emerging sources of development funding, such as development finance instruments* and investment funds.

The seminar also featured discussions of cooperation measures among the aid agencies regarding the Dawei Special Economic Zone and Deep Sea Port Development Project, a mega-scale infrastructure development project with combined Myanmar-Chinese-Thai-Cambodian-Vietnamese-Laotian interests.

In particular, cases of financial cooperation among the four aid agencies and lists of candidate projects were shared and debated during the discussion session.

*Loans with higher interest rates than traditional ODA loans such as concessional loans but lower interest rates than commercial loans. A concept which covers guarantees and equity investments.

Following the seminar, Korea Eximbank hosted a regular meeting between EDCF and JICA at Korea Eximbank Headquarters on August 27, where the two agencies discussed ways to co-finance infrastructure development projects conducted jointly by Korean and Japanese companies.