Korea, Laos sign $500 million development cooperation fund agreement

President Yoon Suk Yeol farewells Lao President Thongloun Sisoulith after talks in Vientiane on October 10 2024 Yonhap — President Yoon Suk Yeol (left) shakes hands with Lao President Thongloun Sisoulith after talks in Vientiane on Oct. 10, 2024. Yonhap

SEOUL, October 11 (AJP) - South Korea and Laos signed a framework agreement on Thursday for a $500 million economic cooperation fund, set to run from 2024 to 2027.

The deal, part of South Korea's Economic Development Cooperation Fund (EDCF) program, was announced by the Ministry of Economy and Finance during the ASEAN summit in Vientiane, Laos.

The agreement maintains the same funding level as the previous 2020 to 2023 period. It aims to support high-value infrastructure projects in Laos, particularly in areas such as transportation and water resources.

The EDCF program offers long-term, low-interest loans to developing countries to boost their economic and industrial growth.

The agreement was signed during South Korean President Yoon Suk Yeol’s visit to Laos for the ASEAN summit.

The finance ministry expressed optimism about the deal, stating it would enhance bilateral cooperation in crucial infrastructure sectors.

South Korea's EDCF program was initiated in 1987 to support economic and social infrastructure projects in developing nations.

AJP