South Korea and the Asian Development Bank (ADB) have signed a trust fund agreement to support development cooperation in the field of artificial intelligence (AI). The two sides agreed to expand their cooperation to include the operation of an AI innovation development center in South Korea, as well as joint projects in climate technology, critical mineral supply chains, and nuclear power.
The Ministry of Economy and Finance announced that the '2026 South Korea-ADB High-Level Annual Meeting' was held at the Korea Export-Import Bank in Seoul. The meeting was attended by Moon Ji-sung, the ministry's International Economic Affairs Director, and You Hyekyung, ADB's Vice President for Administration and Corporate Management, who served as the chief representatives for both sides.
During the meeting, the two parties signed the 'Korea AI for Development Trust Fund' agreement. The fund will be used to support the operation of ADB's AI Innovation Development Center (CAID) and development cooperation projects in the AI sector.
CAID is ADB's AI cooperation center participating in South Korea's initiative to establish a 'Global AI Hub.' An agreement was reached in May between Deputy Prime Minister Lee Hyung-il and the ADB President to establish the center in South Korea. The two sides also discussed plans for the center's establishment and operation, as well as initial cooperation projects.
South Korea introduced the 'K-AI Package' project, which links AI technology and infrastructure with development finance. This approach aims to provide comprehensive support to developing countries by combining AI solutions, data centers, and power supply facilities with official development assistance (ODA).
Director Moon emphasized the principles of mutual benefit, performance accountability, and synergy in South Korea's ODA policy direction. He explained a package-type cooperation system that connects the Economic Development Cooperation Fund (EDCF), Knowledge Sharing Program (KSP), and the Korea-ADB Trust Fund, and requested increased participation of South Korean companies and experts in ADB projects.
Cooperation in climate change response and critical mineral supply chains was also discussed. The two sides shared updates on the operation and future plans of the Korea-ADB Climate Technology Hub (K-Hub). South Korea proposed utilizing the Global Voluntary Carbon Market (GVCM), which it plans to establish starting in 2027, as part of the K-Hub project.
In the critical minerals sector, they reviewed the progress of supply chain cooperation projects among South Korea, Uzbekistan, and ADB. Previously, the Korea Export-Import Bank, ADB, the Uzbekistan Reconstruction and Development Fund (UFRD), and Uzbekistan's state-owned enterprise TMK signed a four-party memorandum of understanding for critical mineral supply chain cooperation. This initiative aims to combine Uzbekistan's critical mineral resources with South Korea's processing and refining technologies, supported financially by the Export-Import Bank and ADB.
The possibility of cooperation in nuclear power was also raised. ADB revised its energy policy last November to allow financial support for nuclear power projects that meet safety and environmental requirements. During the meeting, ADB explained the policy revisions and requested discussions on specific future cooperation plans.
Vice President You introduced ADB's strategic business outlook for 2027-2029, expressing a commitment to expand cooperation with South Korea in AI and digital transformation, regional integration, private sector development, and climate change response.
Following the annual meeting, Vice President You met with Deputy Minister Heo Chang to explain the outcomes of the discussions. Deputy Minister Heo urged that the issues discussed be followed up with concrete projects and results.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.