Earlier, Deputy Prime Minister and Minister of Finance Koo Yun-cheol announced at a recent meeting on external economic affairs that the government aims to advance Korean-style development finance to support the country's entry into new markets in the Global South. He stated, "We will introduce a new development finance model that mobilizes private finance to support the development of emerging economies through various financial instruments."
The government has recognized the growing need for development finance. Major advanced countries are also shifting from budget-centered official development assistance (ODA) to development finance that utilizes private resources.
Development finance is characterized by long financial support periods, a high risk tolerance, and a broad scope of assistance, which is expected to enhance South Korea's competitiveness in securing large-scale infrastructure projects in developing countries.
Participants suggested that as global development cooperation trends evolve, the South Korean government should also activate its development finance capabilities. Kim Yong-bin, head of the Development Marketing Research Institute, shared examples of development finance institutions from major advanced countries, discussing their areas of support, key strategies, and methods of assistance.
Deputy Minister Heo emphasized the need to establish a framework for Korean-style development finance that aligns with the country's conditions, stating, "We will continue to engage with private experts."
The Ministry of Finance plans to hold a task force meeting to establish a comprehensive development finance framework based on the discussions from this meeting.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.