Press Release No. 18/391

The Republic of Korea Renews IMF Capacity Development Partnership with US$20 Million Contribution

October 13, 2018

• Korea to support the IMF’s capacity development efforts with a contribution of US$20 million over the next five years.
• Renewed partnership will enable continued support for technical assistance and training, primarily in low and lower-middle income countries.

The International Monetary Fund (IMF) and the Republic of Korea’s Ministry of Economy and Finance have renewed their global partnership on capacity development (CD). IMF Managing Director Christine Lagarde and Deputy Prime Minister and Minister of Economy and Finance of Korea Dong Yeon Kim signed today a Letter of Understanding for US$20 million over the next five years. This is a renewal of the current five-year partnership with Korea.

Korea has been a long-standing supporter of IMF technical assistance and training, most notably with contributions to the South Asia Regional Training & Technical Assistance Center (SARTTAC) and the Pacific Financial Technical Assistance Center (PFTAC), and the Data for Decision (D4D) Fund. The additional contribution of US$20 million over the next five years is anticipated to elevate Korea’s profile as a partner to IMF capacity development activities.

“Strong economic institutions are crucial for a country’s development. Our renewed partnership with Korea will continue to support countries worldwide – particularly low and lower middle income – in strengthening these institutions through technical assistance and training. This partnership also reinforces our common objectives under the Sustainable Development Goals (SDGs),” Ms. Lagarde said at the signing ceremony during the IMF Annual Meetings in Indonesia.

“Over the last five years, Korea took part in various support projects for low-income countries. Through the Administered Account for Selected IMF Activities, which led to substantive outcomes. By extending our contribution to technical assistance and training for beneficiary countries, we hope to enhance cooperation between Korea and the Fund.” Deputy Prime Minister Kim said at the ceremony.

Korea’s contribution will continue to support global and regional priorities that help beneficiary countries build stronger economic institutions and boost their capacity to implement sound macroeconomic policies. Both are critical for building global economic stability and prosperity for achieving the SDGs.

Background

Korea has been a long-standing supporter of IMF capacity development. Most notable is the establishment of a dedicated CD Subaccount in 2013, with US$16 million towards a range of regional and thematic initiatives focused on critical economic and development topics. This includes support for: The Data for Decisions (D4D) Fund, the Revenue Mobilization Thematic Fund (RMTF), the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Fund, the South Asia Regional Training & Technical Assistance Center (SARTTAC), the Pacific Financial Technical Assistance Center (PFTAC) and peer-learning workshops focused on strengthening macroeconomic management skills in Cambodia, Lao P.D.R., Myanmar, and Vietnam.

The IMF’s capacity development efforts are part of its core mandate and help governments strengthen their economic institutions through technical assistance and training. A global network of regional capacity development centers is complemented by global thematic funds for capacity development. They are financed jointly by the IMF, external development partners, and member countries.

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