Bank Supported Korea's Surge

Relations between Korea and the Asia Development Bank began in the 1960s during Korea's economic development drive; its success changed Korea from a borrower to a lender. Cumulative ADB loans to Korea from its inception through 2000 stood at $6.3 billion.

Korea was one of the founding members of the ADB in 1966; the third ADB conference was held in Seoul in 1970. The bank helped Korea throughout its stunning economic growth, lending a total of $2.3 billion here between 1968 and 1988. From the mid-1970s to the mid-1980s, about $100 million to $200 million in loans were drawn annually by Korea for use in building infrastructure, particularly roads and ports.

Korea turned to international financial markets at the end of 1988, transforming itself into a lending member of the bank, but during the financial crisis in 1997, Korea again sought help from the ADB. At the end of 1997, Korea signed an agreement with the bank for a $4 billion loan and by the end of 1998 had drawn $3.7 billion of that amount. The loan supported Seoul's initiatives for policy and institutional measures in the financial sector.

Today, Korea is the sixth largest shareholder of the Asia Development Bank among Asian members, and the eighth-largest shareholder overall, with a stake of just over 5 percent in the institution. The economic deputy prime minister, Jin Nyum, represents Korea on the bank's governing board, and Chon Chol-hwan, governor of the Bank of Korea, is Korea's alternate governor. As of December 2000, there were 36 Korean professional staff at the ADB.

by Limb Jae-un