The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-hoon, “Korea Eximbank”) announced on March 6 that it established an MOU with the Abu Dhabi Fund for Development (ADFD).

Korea Eximbank Chairman Lee Duk-hoon met with ADFD's Director General Mohammed Saif Al Suwaidi and signed the MOU on co-financing for development projects in developing countries, cooperating on the identification of and support for public-private partnership (PPP) projects by utilizing Korea Eximbank's financial advising service, and carrying out Korea's development experience and knowledge sharing.

Chairman Lee is currently visiting the UAE as a member of President Park Geun-hye's economic delegate to the Middle East.

After the signing ceremony, Chairman Lee said, "The establishment of the MOU between the two institutions has set the stage for the two countries to boost practical financial cooperation." He added, "I expect that the joint entry into third country markets will be made possible by harnessing the capital and technologies of the two countries, with our cooperation on ODA* being the first step."

- Official development assistance (ODA) refers to the funds (both concessional loans and grants) provided by the central government or public organizations of a country for the economic development and welfare of developing countries.

Korea Eximbank and ADFD plan to co-finance development projects in developing countries in sectors such as new urban development, new renewable energy, infrastructure, ICT, and education.

As a result of the MOU, Korean businesses now have a better chance to enter MENA* markets.

- MENA is the abbreviation of the Middle East and North Africa.

In particular, the two institutions have agreed to proactively identify and support PPP projects to close the financing gap of large-scale infrastructure projects by utilizing various financing tools such as financial consultancy and equity investment.

Furthermore, they plan to maximize the effectiveness of development projects with the financing package to co-finance projects identified through KSP*.

- Since its launch in 2004, the Knowledge Sharing Program (KSP) has been carrying out projects in about 50 countries around the world. It has been paving the way for friendly economic cooperation and supporting the economic and social development in developing countries by sharing Korea's experience and knowledge on economic development.

Korea Eximbank plans to increase financing cooperation with other donor institutions in Middle East countries that have sizable financial resources such as Kuwait and Saudi Arabia.

A Korea Eximbank official said, "We will spur our efforts to increase aid in a mutually beneficial way that helps achieve the economic development in partner countries while opening doors for Korean businesses to enter the global market."