Seoul, October 16, 2012—In partnership
with KoFC (Korea Finance Corporation), IFC and MIGA today hosted the Korea–World
Bank Group Private Sector Seminar in Seoul to discuss opportunities to
strengthen their partnership when making sustainable and profitable private
sector investments in emerging markets. The forum discussed ways of bringing
innovative private sector solutions, including financing, guarantees, and
knowledge transfer, to more developing countries around the world. It marks
a milestone in the partnership between the World Bank Group and South Korea.
“I’m proud to say that the World Bank
Group has played a small but not inconsequential role in South Korea’s
success,” World Bank Group President Jim Yong Kim told around 300 private
sector executives, government officials, and academics. “As we will now
open an office in Seoul, we want to strengthen our collaboration with Korean
businesses, investors, and entrepreneurs to identify promising opportunities
in developing economies, ones that will contribute to ending poverty and
creating shared prosperity."
South Korea joined the World Bank in
1955 and the World Bank Group extended its first funds to South Korea in
1962 when it was still a developing country. Today, South Korea is member
of the Organization for Economic Co-operation and Development, whose members
include some of the most developed economies around the world.
“We are committed to partnering with
the World Bank Group, and in particular IFC and MIGA, to support more and
more investments by Korean companies as they continue to enter new markets,
including those where Korean companies may be less familiar, such as Africa,”
said Young-wook Chin, President and CEO of Korea Finance Corporation. “Sustainable
investments in emerging markets will benefit our economy by promoting innovation
and regional collaboration.”
Since its first investment in South
Korea in 1968, IFC, the largest global development institution focused
exclusively on the private sector, has invested and mobilized close to
$1 billion in support of 44 Korean companies. IFC also played an active
role in helping the country weather the 1997 Asian financial crisis. Today,
IFC and MIGA are South Korea’s partners in providing financing, advice
and political risk mitigation solutions to the private sector in a number
of developing countries including Haiti, Pakistan, Nepal, Laos, Kazakhstan,
Indonesia, and Uzbekistan.
KoFC, since its establishment in October
2009, has been providing financial assistance to diverse domestic sectors
that are important to Korea’s economic growth. KoFC’s financing also
includes facilitating large-scale projects carried out by Korean companies
around the globe, including in developing countries. KoFC’s partnership
with IFC has grown through a variety of channels including a Memorandum
of Understanding in 2011.
MIGA Executive Vice President Izumi
Kobayashi and IFC Asia Pacific Vice President Karin Finkelston joined Dr.
Kim at the seminar and introduced the two multilaterals’ experience in
emerging markets. KoFC President & CEO Young-wook Chin and Executive
Vice President Bong Sik Choi also took part and discussed ways for financial
institutions to support developing country investments and introduced KoFC’s
plan to financially support Korea’s overseas projects.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.
Established according to the Korea Finance
Corporation Act in 2009, KoFC is Korea’s key policy-based financial institution.The
Korean government contributed 100% of KoFC’s paid-in capital. KoFC’s
role for the country’s economic growth is diverse which includes supporting
SMEs, facilitating regional development and SOC projects, promoting new
growth engine industries, enhancing financial market stability, and fostering
a sustainable growth. KoFC contributes to strengthening Korea’s competitiveness,
job creation by maximizing growth potential, and a sound growth of the
country’s national economy. For more information, visit www.kofc.or.kr.
MIGA was created in 1988 as a member
of the World Bank Group to promote foreign direct investment into emerging
economies to support economic growth, reduce poverty, and improve people’s
lives. MIGA fulfills this mandate by offering political risk insurance
(guarantees) to investors and lenders, covering risks including expropriation,
breach of contract, currency transfer restriction, war and civil disturbance,
and non-honoring of sovereign financial obligations. For more information,