Washington, D.C., April 16, 2011
—IFC, a member of the World Bank Group, and the Government of Korea have signed an agreement to set up a trust fund for Korean contributions to promote private sector development in emerging markets. With this agreement made during the World Bank Group Spring Meetings, Korea, a former IDA country and IFC recipient, became an official donor to IFC Advisory Services.
Under this agreement, the Ministry of Strategy and Finance of Korea committed $1.5 million to provide advisory services in emerging markets. The Ministry is currently under discussions with IFC to expand its support.
“As a former IDA and IFC recipient, Korea appreciates the importance of a robust private sector to break the poverty circle,” said Mr. Sung-Soo Eun, Director-General for International Finance at the Korean Ministry of Strategy and Finance. “Working with IFC to support the private sector, especially small and medium enterprises, will help create the jobs necessary for economic development and poverty reduction.”
“Korea is an exceptional example of an IDA and IFC recipient which has transformed into a donor and financing partner in emerging markets,” said Rachel Kyte, IFC Vice President for Business Advisory Services. “Korea’s development experience, its approach to financial sector regulation, information and technology, sustainability, and corporate governance reforms can serve as an excellent model for many developing countries.”
This agreement to set up a trust fund for advisory services is a new milestone in a growing relationship. Following the G20 meeting in Seoul in November, the Ministry of Strategy and Finance of Korea and IFC are working on another $1 million contribution to support small and medium size enterprises in emerging markets.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit