Washington D.C., April 13, 2023 – IFC and the Government of Korea are launching a new program to support climate action, digitization, and the application of technology to improve climate outcomes in emerging and developing economies.
The Government of Korea is providing $30 million for the Korea Green Resilient and Innovative Development (K-GRID) program, which will support IFC projects that contribute to reduction or avoidance of greenhouse gas emissions and facilitate the development and commercialization of technologies to improve climate mitigation. It will also support innovative digital solutions and digitalization in all sectors that can help to close the digital divide in developing economies.
The program includes $20 million in funding for advisory services and upstream project development work as well as $10 million in blended concessional finance to de-risk investments. Blended concessional finance can help alleviate first-mover costs and create new markets where involvement of the private sector is nascent.
"The new K-GRID program affirms our strong support for IFC's work in the private sector development and Korea's commitment to addressing climate change and building a sustainable future," said Kyungho Choo, Deputy Prime Minister, Ministry of Economy and Finance of the Government of Korea. "We anticipate that our contribution to blended finance will also scale up investments and accelerate development efforts in challenging markets where it otherwise would not go."
"Korea has been a longtime partner of IFC as a donor and co-financier," said Makhtar Diop, IFC Managing Director. "This contribution reflects both a deepening of our excellent partnership and Korea's strong leadership in global development challenges such as climate action and digitalization."
This marks the first time the Government of Korea has contributed an IFC blended concessional finance facility, demonstrating its commitment to promote private sector development and private capital mobilization.
This milestone coincides with the 10-year anniversary of IFC's Korea Office, which was re-established in 2013. Over the past decade, IFC has provided financing for projects worth over $7 billion involving Korean companies and banks acting as sponsors and partners.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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