S. Korea repays outstanding debt of $33.5M to fund for poorest: World Bank

By Hwang Doo-hyong
WASHINGTON, Dec. 16 (Yonhap) -- South Korea Wednesday repaid its outstanding debt
of US$33.5 million to the International Development Association (IDA), the World
Bank's fund for the 79 poorest countries.
The early lump sum payment comes less than a month after South Korea, the world's
14th biggest economy, joined the Development Assistance Committee (DAC) of the
Organization of Economic Cooperation and Development (OECD), becoming the first
former aid recipient to become a member of the donors club of the world's richest
countries.
"We greatly appreciate the government of Korea's decision to prepay its
outstanding credits, which will help increase IDA's capacity to provide
additional support to the poorest countries in the world," said Axel Trotsenburg,
World Bank vice president, in a statement. "Korea has been a close partner of IDA
for almost five decades, first as a recipient of IDA soft loans and later as a
donor."
A member of IDA since 1961, South Korea received its first IDA funding in 1962 to
invest in agriculture, irrigation, education, and railroads.
Seoul stopped borrowing in 1973 and became a donor in 1977.
The South Korean government said recently it will increase its ratio of official
development assistance to gross national income from 0.09 percent in 2008 to 0.25
percent by 2015.
"IDA is a major source of financing for the poorest countries and my government
will continue to provide strong support," said South Korean Vice Finance Minister
Hur Kyung-wook, according to the World Bank. "Our economy is now recovering from
the effects of the global financial crisis and we recognize the importance of
assisting the world's poorest people as they continue to readjust to the shocks."
hdh@yna.co.kr
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