S. Korea to increase development loans for poor nations this year

SEOUL, Jan. 12 (Yonhap) -- South Korea will provide more soft loans to poor
countries this year as part of efforts to expand its global assistance and pave
the way for domestic companies' entry into overseas markets through greater
economic cooperation, the finance ministry said Tuesday.

According to the Ministry of Strategy and Finance, the government plans to hand
out a total of 470 billion won (US$419 million) in loans this year, up 51.6
percent from a year earlier, by tapping the Economic Development and Cooperation
Fund (EDCF).
The EDCF is a state-run fund aimed at helping poor and less developed countries
through loans that carry low interest rates.
The increase in assistance comes as South Korea gained membership to the
Development Assistance Committee (DAC) of the Organization for Economic
Cooperation and Development (OECD) in November. The nation became the 24th member
of the DAC, a club of donor countries.
South Korea, once a recipient of U.N. handouts after the 1950-53 Korean War, has
been providing official development assistance since the late 1980s. Its entry
into the DAC will enable the country to play a more active role in international
efforts to help countries in need, experts say.
The ministry said that its EDCF loan expansion this year is in line with the
nation's increased international status as a member of the donor-country club and
as host of the upcoming summit of the Group of 20 advanced and emerging economies
in November.
The loans are aimed at helping other Asian and African countries in their effort
to construct economic and social infrastructure. Support will also be given to
tackle food shortage problems and climate change issues confronting those
nations, it added.
kokobj@yna.co.kr
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