South Korea offers US$ 4 billion loan to India for high-value infrastructure projects
NEW DELHI. South Korean Ambassador to India Chang Jae Bok on Tuesday said that his government will provide UD$ 4 billion as a line of credit from its Economic Development Cooperation Fund (EDCF) to India for high-value infrastructure projects in the next three years. A discussion to this effect took place between South Korean President Yoon Suk Yeol and Prime Minister Narendra Modi on Sunday when they met on the sidelines of the G20 Summit in New Delhi, the South Korean envoy told Indian media on Tuesday. The meeting lasted for 40 minutes.
“We have agreed to provide an amount of $ 4 billion during 2023-25. To realise this project we need more discussion with the government officials. The first step is to sign the framework agreement…so that was discussed between the two leaders,” the envoy said.
“The Economic Development Cooperation Fund (EDCF) framework agreement is in the works. It could be used to build India It will allow Korean companies to be involved in high-value projects here.
In November 2022, Korea signed an agreement between the Government of India and the Government of the Republic of Korea to give a loan of Korean Won 245.081 billion (approx. Rs. 1,495.68 crores) to establish the Intelligent Transport System on the Nagpur-Mumbai Super Communication Expressway project.
Other issues that came up during the bilateral meeting between President Yoon and PM Modi also included the issue of the possibility of North Korea handing over its nuclear arsenal to Russia. The South Korean Ambassador said that North Korea is playing a ‘survival game’ with its nuclear arsenal and if it provides any weapons to Russia, it will be “very dangerous”.
He said: “North Korea is kind of playing a survival game with a nuclear arsenal. And if North Korea provides some weapons or arsenals to Russia, it will be very dangerous, so we are very cautious about that.”
He made the response to a question when asked about North Korea’s Kim Jong Un scheduled to meet Russian President Vladimir Putin.
”We will see, and have already issued a warning to the North Korean regime,” he said.
He also thanked India for being a wonderful host for the G20 Summit which was also attended by Yoon Suk Yeol, President of the Republic of South Korea.
To a question about the New Delhi Declaration and everyone coming to consensus on the Ukraine-Russia issue, Chang Joe-Bak said, “We appreciate the Indian leadership coming up with the consensus in the paragraph relating to Ukraine.”
“We thank the Indian government and Amitabh Kant for making great efforts to get the herculean task of declaration done and for getting a consensus of all members of the country. At the end of the day, G20 members had a consensus on the declaration, we must congratulate everyone. In particular, I will emphasize, para 14, it says this is not an era of war and it is our position as well,” the South Korean Ambassador to India said.
“Both leaders have strengthened the defence system. We welcome the electronic data exchange system which will make bilateral trade and investment much smoother. Economic development cooperation funds will help infrastructure in India. They have also agreed to strengthen space programmes to team up for critical technologies,” he said.
He also said that India and South Korea will also team up in defence industry cooperation which will be the core sector of the partnership between the two countries.
He said that some technology that can be transported to India from South Korea, like conventional submarines, and missile systems can be discussed between the two armed forces. “Defence industry cooperation will be the core sector of the partnership with the two countries,” he said.
He also congratulated India on its G20 Presidency, saying that India will become a global leader.
When asked about India and South Korea exploring a new migration agreement to allow easier mobility for professionals to move between both economies, the envoy said: “We are working on the partnership agreement as proposed by India. Issues will be discussed. We will reply to the Indian government about that. It will be mutually beneficial for India and South Korea.”
He also said that South Korea has a problem with a low birth rate and in his personal opinion, Korea needs more skilled Indian people to come to Korea.
The G20 Summit was held in Delhi on September 9 and 10.
