Korea Boosts Rural Development in Cambodia with Nearly USD 2 Billion in Loans within 15 years

• 17 July 2025
• Local News
• 1275 Views

Over the past 15 years, South Korea has significantly contributed to the enhancement of rural infrastructure in Cambodia, providing nearly USD 2 billion in concessional loans. This investment, amounting to approximately USD 1.946 billion, has been facilitated by the Economic Development Cooperation Fund (EDCF) through the Korea Development Bank, targeting the development of rural roads across the nation.

This remarkable achievement was highlighted during a recent meeting between His Excellency Chhay Rithsen, Cambodia’s Minister of Rural Development, and Ms. Minnie Chey, the Country Director of the Korea Development Bank, held on July 8, 2025. During the meeting, it was noted that this continued cooperation has positioned Cambodia as the third-largest partner country of the EDCF, underscoring the strong ties between the two nations.

The partnership received a further boost following Prime Minister Hun Sen’s official visit to South Korea in May 2024. During this visit, commitments were made to elevate concessional loans to a substantial USD 3 billion for Cambodia from 2022 to 2030, paving the way for enhanced rural development initiatives.

Under the EDCF framework, the Cambodian Ministry of Rural Development has already initiated seven projects with a total budget exceeding USD 400 million. These projects are currently underway, encompassing over 1,700 kilometers of double-layer asphalt and concrete roads, along with the construction of 42 concrete bridges totaling approximately 2.4 kilometers in length and various other critical infrastructures.

At the conclusion of the meeting, Minister Rithsen urged the Korea Economic and Trade Bank to continue its support for the Ministry’s initiatives, especially in developing rural model villages. This particular initiative aims to accelerate rural growth and improve living conditions for residents.

It is important to note that Cambodia boasts over 50,000 kilometers of rural roads; however, only 8,527 kilometers, or nearly 20 percent, are comprised of resilient asphalt and concrete, capable of withstanding climate change impacts and usable year-round. (Read more)

As Cambodia strides toward improved rural infrastructure, the ongoing collaboration with South Korea is anticipated to play a pivotal role in transforming rural communities and bolstering the country’s economic development.

• Investment and Funding
• Road and Infrastructure