South Korea will increase financial support to African countries and share past development experiences to help stimulate their growth, the government said Wednesday.
The Ministry of Strategy and Finance said its new "RISING initiative" calls for increasing Seoul's Economic Development and Cooperation Fund (EDCF) to African countries to US$1.09 billion in the next five years and establishing "tailor-made" economic development models for 12 countries by 2012.
The initiative announced at the third Korea-Africa Economic Cooperation Conference (KOAFEC) aims to be more responsive to the needs of Africa, pursuing inclusive policies that can contribute to sustainable growth and an integrated economy, and meeting global efforts to fuel economic gains.
The total to be allocated to the EDCF represents a two-fold increase from the present with resources to be used to upgrade basic infrastructure and to bolster business activities.
The ministry also said the government plans to increase size of loans that can be taken out to finance large-scale projects in Africa from 1.5 trillion won (US$1.3 billion) this year to 2.3 trillion won in 2012, with export insurance coverage to be expanded by 200 billion won to 600 billion won in the next two years.
In addition, it said a memorandum of understanding has been signed with the African Development Bank that commits Seoul to provide 3.5 trillion won to help fight poverty and support rural community growth in Africa.
Related to the new initiative, Finance Minister Yoon Jeung-hyun said at the KOAFEC meeting that South Korea is strongly committed to expanding collaboration with African countries in an effort to promote co-prosperity.
"South Korea plans to increase development assistance and will also share its economic growth experience with African countries," he said.
The official added that by engaging in a close partnership arrangement, Seoul will do its part to expand Africa's social safety net and create more opportunities for middle and low-income families.
The minister, meanwhile, said that the creation of a new "Africa Climate Change Partnership Fund" is being considered so the continent can join ongoing efforts to reduce global warming.
Yoon, meanwhile, said that South Korea as the chair of the G-20 summit meeting planned for November, will actively reflect African views to the leading economies of the world.