WASHINGTON, D.C., May 14, 1999 –
Executive Vice President Peter Woicke will travel to South Korea and China, countries where IFC is making groundbreaking investments to promote the development of the private sector, following a brief stop in Tokyo.
IFC has taken a particularly innovative approach to investment in Korea, which had not needed IFC help in a decade before the Asia crisis hit. In response to the crisis, IFC, the private sector arm of the World Bank, has made pioneering investments designed to lure private sector investors back. It is restructuring financial institutions such as banks and brokerage companies and has established a mutual fund to broaden and deepen the capital markets. To accommodate the post-crisis circumstances in Korea, IFC moved beyond its usual project financing, to provide trade finance, investing $120 million in three trade finance facilities. In addition, IFC has put about $100 million into helping fundamentally sound businesses to restructure and become competitive again.
The importance of IFC's work in Korea, according to Mr. Woicke, was in providing model deals that commercial investors could emulate, and in signaling IFC confidence in worthy Korean entities. "Part of IFC's role is to be the first investor back in after a financial crisis to help rebuild society by regenerating the enterprises that are the strength of the economy."
To further strengthen IFC's relationship with Korea, Mr. Woicke will meet with the Ministers of Finance and Economy, Commerce, Industry and Energy, and Construction and Transport as well as the Chairman of the Financial Supervisory Commission and with leaders of the foreign and local business community.
In China, Mr. Woicke will travel to Shanghai, where he will review several large investments with municipal officials. In Beijing he meets senior government officials, including ministers for state development planning, finance, and foreign trade and economic cooperation as well as with Vice Premier Li Lanqing. He will also visit IFC projects in interior Sichuan Province.
IFCs held portfolio in China was $257 million at the beginning of the fiscal year last July. Investments range from support of financial sector development to major industries, such as ongoing investments in Plantation Timber Products Limited and Leshan Scana Machinery Co. Ltd. and smaller industries, such as a leather tannery in Leshan, one of the first completely indigenous private companies to receive international financing. IFC has also invested to establish the first credit-rating institution in China, a finance company, and a bank that funds joint ventures.
In Japan, IFC's second largest shareholder, Mr. Woicke will meet government, banking and business leaders.
The mission of IFC is to promote private sector investment in developing countries which will reduce poverty and improve people's lives. It fosters economic growth by financing private sector investments, mobilizing capital in the international financial markets and providing technical assistance and advice to governments and businesses.
Mr. Woicke's itinerary:
May 17 Tokyo
May 18-9 Seoul
May 20 Shanghai
May 21 Beijing
May 22 Chengdu
May 23 Leshan
Journalists are invited to a news conference with Mr. Woicke in Seoul, Wednesday May 19, 3:45 p.m.
For further information, please contact Deepak Khanna in Seoul at (822) 399-0905
