South Korea discloses USD$12 billion for investing overseas before FTA Talks with Cambodia next month

• 16 June 2020
• Local News
• 4171 Views

South Korean finance minister, Hong Nam-ki, has revealed plans to provide USD$12 billion to support large-scale overseas projects before joining in a free trade agreement (FTA) talks with Cambodia in July, according to Business Korea on 15 June 2020.

“The two nations completed a joint feasibility study on a potential FTA in May and wrapped up preparations last week. The government will report the matter to the National Assembly this month before launching bilateral FTA talks next month,” he said.

Before the FTA negotiations with Cambodia, in an economic meeting, he also disclosed measures provided by the South Korean government to assist Korean companies to win overseas orders and revive the nation’s economy.

The measures include providing over 15 trillion won or about USD$12 billion support to promote Korean companies participating in large-scale overseas projects whereby the government will:

• Select 30 large-scale construction projects overseas and help support Korean companies to participate in those projects;
• Provide a total of USD$3 billion in financial support to help receive orders, of which USD$1 billion is for new funds for global construction, USD$331 million for investment by the global infrastructure funds, and USD$1.4 billion in financial support by the Export-Import Bank and Korea Trade Insurance Corp;
• Provide partner countries with consulting services, such as through the Economic Innovation Partnership Program, a new KSP model, to help those countries plan new projects, including smart city projects.

In addition, the South Korean government will provide USD$10 billion in loans and guarantees to promote participation in new projects. With this effort, the Korean government plans to assist companies to achieve US$30 billion in orders this year.

• Projects Development
• Economy and Finance