The government will provide $100 million to the Asia-Pacific Innovation Financial Institution and create the 'K-Hub,' a technology hub for developing countries.
On the 5th (local time), Choi Ji-young, Deputy Minister of the Ministry of Economy and Finance, attended the opening ceremony and governor business session of the 58th Asian Development Bank (ADB) annual meeting held in Milan, Italy, where she noted this.
The ADB meeting, held under the theme 'Sharing experiences, preparing for the future,' was attended by government delegations from 69 member countries, as well as officials from international financial institutions and corporations, including the Governor of the Central Bank of Italy, the Minister of Finance of Japan, the Minister of Finance of China, and the Minister of Finance of India. Following the resignation of former Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, Deputy Minister Kim Bum-seok assumed the role of acting minister, with Choi Ji-young attending as the chief representative from our side.
At the meeting, Kanda Masato, the new president of the ADB, explained priority support goals, including responses to climate change, enhancing food security, and digital transformation. He emphasized the need to increase ADB's resources and strengthen the institution's capabilities to effectively achieve these goals.
In her speech, Choi Ji-young expressed the South Korean government's support for ADB's reform strategy and proposed three directions for development in response to changes in the international economy and development environment.
Choi Ji-young said, 'We need to continue to expand support for global public goods, which is ADB's core mission,' adding, 'The South Korean government participated with $100 million in the innovation financial institution for the Asia-Pacific region to support ADB's global public goods mission.' The Asia-Pacific Innovation Financial Institution is an entity where donor countries provide guarantees for existing ADB loans, enabling the execution of new climate loans with the additional borrowing capacity secured through this process.
Choi Ji-young also stated, 'We are supporting technology and policy consulting projects related to critical minerals,' and said, 'We plan to establish the K-Hub in Korea.' The K-Hub will serve as the ADB's Korean office, responsible for leading climate technology and expert networks.
Choi Ji-young further urged that 'systematic performance management serves as a foundation for improving developmental effectiveness and securing stable resources,' calling for efforts in performance management. She noted, 'The South Korean government will strengthen performance management for the trust funds and cooperative loan projects it is participating in.'
She continued, 'I urge that the ADB partnership be expanded from government-centered to the institutional sector,' emphasizing that 'under the changed international development environment, it is important to utilize the resources and expertise of the institutional sector.' She added, 'I hope ADB will take a leading role in establishing appropriate risk-sharing systems and efficient collaboration methods between government and the institutional sector.'