Republic of Korea Commits $2 Billion in Cofinancing with ADB

TBILISI, GEORGIA (4 May 2024) — The Republic of Korea today signed a memorandum of understanding (MOU) with the Asian Development Bank (ADB) earmarking $2 billion in cofinancing for ADB sovereign operations over the next 3 years. The cofinancing will support climate change-related projects as well as transport, energy, agriculture, education, governance reform, health, and information and communication technology (ICT) projects.

The MOU was signed by Republic of Korea Deputy Prime Minister and ADB Governor Choi Sang Mok and ADB President Masatsugu Asakawa. The $2 billion agreement marks a three-fold increase from a previous MOU signed in 2021.

“I thank the Government of the Republic of Korea for its continued strong collaboration with ADB,” said Mr. Asakawa. “The Republic of Korea is a vital knowledge and development partner, among ADB’s largest cofinancing partners, and a generous and consistent contributor to our trust funds. With this significant support, ADB will be able to ramp up its operations to help countries most affected by climate change.”

$800 million of the amount is earmarked for the cofinancing of projects in India. The collaboration will also support public–private partnerships.

The MOU also aims to strengthen technical assistance and feasibility studies support from the ADB-administered Republic of Korea e-Asia and Knowledge Partnership Fund. The fund was established in 2006  to contribute to poverty reduction in Asia and the Pacific by improving access to information and communications technology and facilitating knowledge sharing and partnerships.

In a bilateral meeting, Mr. Asakawa also thanked Mr. Choi for the Republic of Korea’s contribution to the replenishment of the Asian Development Fund and for a $3 million funding pledge to the Central Asia Regional Economic Cooperation (CAREC) Climate and Sustainability Project Preparatory Fund as a founding member. 

The CAREC climate fund will help to address the financing gaps in achieving climate change goals through the preparation of bankable and climate-resilient regional projects for CAREC countries.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.