Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki on May 4 holds a Cabinet meeting at Government Complex-Seoul. (Yonhap News)

By Lee Jihae

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki on May 4 signed a memorandum of understanding (MOU) on a joint financing project between Korea's Economic Development Cooperation Fund (EDCF) and the Asian Development Bank (ADB) in a videoconference with ADB President Masatsugu Asakawa.

The Ministry of Economy and Finance said the project's ceiling was raised from USD 650 million to USD 700 million.

The EDCF was launched in 1987 as a credit assistance fund to expedite economic cooperation with developing countries and aid their economic development.

Under the MOU, the EDCF and ADB divide the working expenses for development projects in the Asia-Pacific region.

Minister Hong said, "We hope this MOU becomes an important platform for economic cooperation between the ADB and EDCF."

He added that Korea will chip in USD 25 million for the bank's E-Asia and Knowledge Partnership Fund this year, nearly three times last year's USD 8.47 million, to actively help developing nations recover from the COVID-19 pandemic and make the transition to a digital and green economy.

jihlee08@korea.kr