At the G20 Summit (November 18-19, Rio de Janeiro, Brazil), President Yoon Suk Yeol announced during Session 1 (Global Call to End Hunger & Poverty) that Korea would increase its contribution to the International Development Association (IDA)*’s 21st Replenishment by 45%.
* IDA: A World Bank entity, which provides concessional loans (long-term, low-interest) and grants to low-income countries, supporting their development and poverty allocation efforts.
This amounts to approximately 846 billion won, marking a significant increase of 261 billion (45%) compared to Korea’s contribution of 585 billion won during the 20th Replenishment in 2021.
IDA replenishes its funds every three years, with countries announcing their respective contribution amounts at the 21st Replenishment Final Meeting in Seoul this December. Korea’s proactive announcement ahead of the meeting underscores its leadership as a global pivotal state and aims to encourage greater participation from other nations. This move is also expected to enhance Korea’s shareholding in both IDA and the International Bank for Reconstruction and Development (IBRD).
IDA’s 21st Replenishment Final Meeting, scheduled for December 5-6 in Seoul, will serve as a platform to highlight Korea’s remarkable journey from being an IDA aid recipient during 1960-1970 to becoming a major donor (ranked 15th under IDA20) and showcase its growing influence.
The WB has also spoke highly of Korea’s decision in its press release*, emphasizing the importance of Korea’s enhanced contribution during a period of global challenges for low-income countries. The Bank also anticipates that Korea’s status as a “key player” in development finance will be further solidified following the December meeting.
* A press release highlighting Korea’s increased contribution to IDA has been posted on the WB website: https://ida.worldbank.org/en/home
Please refer to the attached files.
