Yuliia Svyrydenko, First Deputy Prime Minister - Minister of Economy of Ukraine, and Kim Hyung-tae, Ambassador of Korea to Ukraine, have signed the Agreement on Loans from the Korea Economic Development Cooperation Fund (EDCF). The signing ceremony was held in the presence of President of Ukraine Volodymyr Zelenskyy and Minister of Land, Infrastructure and Transport of Korea Won Hee-ryong.

According to the Agreement, Ukraine or a resident business entity that has received a state guarantee has the right to attract long-term low-interest loans from the Export-Import Bank of Korea through the Economic Cooperation Development Fund (EDCF). At the first stage, such loans can be used to supply equipment. Starting from 2025, it will be possible to attract infrastructure loans for reconstruction, as stated by President of the Republic of Korea Yoon Suk Yeol during the G20 Summit in New Delhi, announcing the provision of USD 2 billion for the reconstruction in the form of long-term low-interest loans through the Economic Cooperation Development Fund (EDCF).

“We need to develop our economy without waiting for the war to end. The signed Agreement opens the way to long-term, low-cost loans, which in turn should help restore production capacity and create new jobs. We look forward to the active participation of the Korean business community in the recovery of our country, as well as the creation of new technological production facilities in strategically important sectors of the economy. Ukraine will also benefit from Korea’s experience in the post-war reconstruction of destroyed infrastructure, industrial and civil facilities,” Yuliia Svyrydenko, First Deputy Prime Minister – Minister of Economy of Ukraine, said.

We remind that the draft Agreement was initialled on 17 May 2023 at the Asian Leadership Conference.

For reference

The Economic Development Cooperation Fund (EDCF) was established by the Government of the Republic of Korea on 1 June 1987 to promote economic cooperation between Korea and developing countries. The Fund provides financial support to partner countries for their industrial development and economic stability.