The Economic Development Cooperation Fund of Korea, administered by the Export-Import Bank of Korea and the Ministry of Strategy and Finance, provides concessional loans to LDCs to facilitate their industrial development and economic stability. The Fund offers five types of loans: (i) development project loans, (ii) equipment loans, (iii) public-private partnership loans, (iv) two-step loans and, (v) commodity loans. The Bank also provides compact loans, co-financing loans and mixed credit loans.
The concessional loan mechanism identifies five groups of countries for which different interest rates and repayment periods apply. The LDCs are the group receiving the most favourable conditions. LDCs are eligible for lower rates and longer repayment periods.
Korea’s development assistance to LDCs has increased significantly over the last decade, from $85.87 million in 2004 to $580.13 million in 2015 (in current prices). Assistance to Afghanistan, Cambodia, Bangladesh, Lao People’s Democratic Republic and Tanzania accounted for more than half of the Korean ODA in 2015.
More information about eligibility criteria and the application procedure can be found on the website of the EDCF.
Utilization by LDCs:
Available smooth transition procedures: