Yoon pledges to boost Korea's contribution to global aid agency at G20 summit

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Yoon pledges to boost Korea's contribution to global aid agency at G20 summit

Published: 19 Nov. 2024, 15:46 Updated: 19 Nov. 2024, 19:39

LIM JEONG-WON
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South Korean President Yoon Suk Yeol, second row center, poses for photos with other G20 countries’ leaders during the launch ceremony of the Global Alliance Against Hunger and Poverty as part of the G20 summit at the Museum of Modern Art in Rio de Janeiro, Brazil, on Monday. [JOINT PRESS CORPS]

President Yoon Suk Yeol pledged to increase South Korea's contribution to the 21st International Development Association (IDA)'s replenishment by 45 percent at the G20 summit in Rio de Janeiro, Brazil, on Monday.

According to the Finance Ministry on Tuesday, Yoon announced this during his speech at the Session 1 meeting on eradicating poverty and hunger at the G20 summit. During the summit, Yoon also urged G20 leaders to take action regarding military cooperation between North Korea and Russia.

The IDA is an organization under the auspices of the World Bank that mainly provides long-term, low-interest concessional loans or grant aid to low-income countries.

Following the announcement made by Yoon, South Korea’s contribution to the IDA will increase by 260.8 billion won ($187.4 million) from the previous 584.8 billion won, which was the contribution at the time of the 20th IDA replenishment in 2021.

The IDA replenishes its resources every three years, and the final amount of each country’s contribution will be announced at a meeting to be held in Seoul in December this year.

The Finance Ministry explained that this announcement of South Korea’s pre-emptive expansion of its contribution was “a measure to demonstrate South Korea’s leadership as a global pivotal state while also drawing active participation from other countries in supplementing their financial resources.”

In particular, this contribution expansion is expected to act as a factor in increasing South Korea’s share in the IDA and increasing the share ratio of the International Bank for Reconstruction and Development (IBRD).

The 21st final replenishment meeting of the IDA, set to take place between Dec. 5 and 6 in Seoul at the Marriott Hotel in Dongdaemun, is expected to be an opportunity to inform the international community of South Korea’s status as a major donor country. South Korea is the first country to transition from a recipient country to a donor country, having been an IDA recipient country in the 1960s and '70s. South Korea had received approximately $120 million in loans for projects such as the Gyeongin Line double-tracking project by the time it graduated from the IDA in 1973.

The World Bank also praised in a press release South Korea’s decision to expand its contribution when low-income countries were struggling due to global crises. South Korea’s status in the development finance sector is also expected to be further solidified as a “key player” through the 21st IDA meeting in December.

South Korean President Yoon Suk Yeol speaks during the second session of the G20 leaders' meeting as part of the G20 summit at the Museum of Modern Art in Rio de Janeiro, Brazil, on Monday. [UPI/YONHAP]

At the G20 summit on Monday, Yoon also urged the leaders of the G20 to take action on military cooperation between North Korea and Russia.

“The direction of the war in Ukraine is an important test to determine whether the international community can block attempts to change the status quo through coercion and protect peace and prosperity,” said Yoon. “The war in Ukraine is entering a critical phase due to North Korea’s large-scale deployment of troops to Russia. I strongly urge Russia and North Korea to immediately stop their illegal military cooperation and for the G20 leaders to unite their will and actions to protect the rules-based order.”

Yoon also attended on Monday, as part of the G20 summit, the launch ceremony of the Global Alliance Against Hunger and Poverty (GAAHP) and promised South Korea’s continued participation as a founding member.

South Korea plans to provide new humanitarian assistance worth $10 million within the year to respond to the food crisis in Africa, taking advantage of its membership in the GAAHP.

BY HUH JIN,LIM JEONG-WON [[email protected]]