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

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