S.Korea to send $130 mn in aid for Ukraine’s reconstruction

Seoul and Kyiv sign a donation agreement on External Economic Cooperation Fund loans

South Korean Minister of Economy and Finance Choo Kyung-ho (right) and Ukrainian Minister of Economic Development and Trade Yulia Svyrydenko
South Korean Minister of Economy and Finance Choo Kyung-ho (right) and Ukrainian Minister of Economic Development and Trade Yulia Svyrydenko
Sang-Yong Park 1
2023-05-18 10:13:03 yourpencil@hankyung.com
Business & Politics

South Korea will aid the reconstruction of Ukraine, which is at war with Russia, through loans worth $130 million from the Economic Development Cooperation Fund (EDCF).

Minister of Economy and Finance Choo Kyung-ho on Wednesday held talks with Ukrainian Minister of Economic Development and Trade Yulia Svyrydenko at the hotel Shilla Seoul and signed an agreement on granting EDCF loans to Kyiv.

Seoul last year sent $100 million in medical supplies to the war-torn country and announced in February this year additional support worth $130 million.

EDCF is a concessional aid program that provides long-term low-interest loans to support development and promote economic cooperation in the developing world. Since the fund’s inception in 1987, South Korea has contributed 23.9 trillion won ($17.9 billion) in funds to 485 development projects in 58 emerging economies through the end of 2021.

Both governments have also negotiated a donation agreement, a procedural requirement for aid to Ukraine through the EDCF. The latest deal takes effect after completing domestic procedures and formal signing by both sides.

As a result, the first step in joining the reconstruction project is expected to be completed soon. The signing of the donation accord allows the start of bilateral policy discussions, project searches, feasibility studies, project approval, detailed design and launch of the main project.

“We pray for the war’s speedy end and restoration of peace in Ukraine,” Minister Choo said. “We look forward to bilateral cooperation in various fields for the reconstruction of Ukraine.”

Write to Sang-Yong Park at yourpencil@hankyung.com

KAI, bastion of South Korea’s fast-growing defense industry

KAI, bastion of South Korea’s fast-growing defense industry

The KF-21, Korea's next-generation supersonic fighter jet, under development by the KAI SACHEON, South Gyeongsang Province – On a hot spring day in April, the roar of combat aircraft engines fills the air. It’s a normal day at Korea Aerospace Industries Ltd., or KAI as it is more co

Another war in Russia: Hyundai, Kia versus Chinese carmakers

Another war in Russia: Hyundai, Kia versus Chinese carmakers

An assembly line at Hyundai Motor's Russian plant in St. Petersburg In Russia, which is in a state of war against Ukraine, there’s another war going on. This time, the war is between South Korea’s two largest automakers, Hyundai Motor Co. and Kia Corp., versus Chinese carmakers.Acco

S.Korea to benefit from rising global defense spending

S.Korea to benefit from rising global defense spending

Hanwha's infantry fighting vehicle Redback. Hanhwa is competing with Germany's Rheinmetall AG for Australia’s IFV project (Courtesy of Yonhap)  South Korea is expected to log another year of record defense exports in 2023 thanks to growing military budgets across the world as local m

Ukraine War Drives Rapid Growth in South Korea’s Arms Exports

Ukraine War Drives Rapid Growth in South Korea’s Arms Exports

South Korea has set a goal of being among the world’s top four arms exporters by 2027 (PHOTO: YONHAP/SHUTTERSTOCK) SEOUL—The Ukraine war has fueled rapid growth in South Korea’s arms exports as countries supporting Kyiv turn to Seoul to replenish their supplies.Now South Korea

Poongsan’s sale of ammunition, artillery shells surges on Ukraine war

Poongsan’s sale of ammunition, artillery shells surges on Ukraine war

Ukrainian soldiers fire an M777 howitzer on the Donbas front (Courtesy of EPA, Yonhap) Poongsan Corp., one of South Korea’s leading copper smelters and defense equipment makers, saw its sales of ammunition and artillery shells surge over the past month, boosted by the protracted Russia-Uk

KOICA donates Celltrion's Herzuma to Ukraine

KOICA donates Celltrion's Herzuma to Ukraine

Herzuma, Celltrion's breast and gastric cancers treatment Celltrion Healthcare Co. said on Monday that Herzuma (ingredient name: Trastuzumab) was dispatched to patients in Ukraine by the Korea International Cooperation Agency (KOICA).The latest donation was led by KOICA at the Ukrainian governm

(* comment hide *}