South Korea to provide USD 4 billion loan to India over next three years for infrastructure projects: Envoy
Sep 12, 2023
New Delhi [India], September 12 South Korea will provide USD 4 billion to India as a line of credit over the next three years for “high-value” projects, the country’s envoy Chang Jae-bok announced on Tuesday.
Addressing a press conference, the envoy told reporters that President Yoon Suk Yeol and Prime Minister Narendra Modi had a discussion on the matter during their bilateral meeting on the sidelines of the G20 summit.
Sharing details of the meeting, the envoy said the two leaders agreed to improve strategic communication and cooperation.
They also discussed expanding defence cooperation between the two countries, Chang said.
"On the economic front, they welcomed the Electronic Origin Data Exchange System coming up later this year. It is going to make bilateral trade and investment much smoother," the South Korean ambassador to India added.
"The EECF or Economic Development Corporation Fund framework agreement is in the works. It could be used to build in India. It will also allow Korean companies to be involved in high-value projects here," he said.
South Korea will provide the loan under the Economic Development Cooperation Fund (EDCF). South Korea announced this fund in 1987 to promote economic cooperation with developing countries.
Asked about details on EECF, the envoy expressed hope that India will be able to develop infrastructure with the help of EECF money.
"Our assistance involves loans and grants. India and (South) Korea have agreed that we will provide the initial amount of 4 billion US dollars from 2023 to 2025 to realise projects. Some projects have already started. These include the Intelligent Transport System on the Nagpur-Mumbai Super Communication Expressway Project. It will be a loan," he said.
PM Modi and President Yoon also agreed to strengthen space development cooperation. The envoy informed that two leaders were scheduled to speak for 20 minutes but the discussion stretched to over 40 minutes.
"They had a quite extensive discussion. Our president also raised the issue of facilitating ease of doing business in India," he said.
"President Yoon and Prime Minister Modi agreed to improve strategic communication and cooperation. Our countries are co-partners in the Indo-Pacific region," he informed reporters.
President Yoon appreciated India's G20 presidency and expressed his gratitude for the host country arranging a bilateral meeting. Both leaders agreed to strengthen cooperation in defence. K9 Vajra is an example of our defence partnership. It is designed by a Korean company.
South Korea is "totally committed" to expanding its defence cooperation with India, the envoy added.
"On the successful touchdown of the Chandrayan-3 lander on the moon, PM Modi and President Yoon agreed to strengthen space development cooperation," he mentioned.
