IDB Group and Korea Announce New Cooperation Package

• It includes a new A.I. Hub in Seoul, more Jobs to Koreans, Guarantees and co-financing for Latin America and the Caribbean

SEOUL - The Inter-American Development Bank Group (IDB Group) and the Ministry of Economy and Finance of Korea today announced the creation of a Korea-IDB Group cooperation package to accelerate innovation, digital transformation, and sustainable growth across Latin America and the Caribbean (LAC).

Announced during the 7th Korea-LAC Business Summit in Seoul, the new initiatives mark the 20th anniversary of Korea's joining the IDB Group. Since 2005, this partnership has fostered innovation and inclusive development across the region.

"Korea's transformation is one of the clearest examples that development can work. The so called 'Miracle on the Han River' was not just a miracle - it was planning, consistency, and execution. Our deepened partnership with this new cooperation package brings those same ingredients to Latin America and the Caribbean - connecting Korea's innovation and experience with our region's private sector to drive sustainable growth," said IDB Group President Ilan Goldfajn.

"Korea continues to stand ready as the IDB Group's steadfast partner. Together, we will keep expanding innovative financial cooperation, while striving to position Korea as the global AI hub," said Yun Cheol Koo, the country's deputy prime minister in the Ministry of Economy and Finance.

The new cooperation package focuses on five priority areas-A.I. and digital transformation, energy, critical minerals, infrastructure, and talent mobility- and includes five main ingredients:

• A new Korea-IDB Group A.I. Hub, to be established in Korea, to scale financing and innovation in artificial intelligence and technologies across both regions.
• An expanded Korea Fund at the IDB, with $20 million in new grant resources to support technology and innovation, including the launch of the A.I. Hub.
• Offer of innovative multilateral credit-substitution guarantees (CSG) to expand IDB lending. This risk-transfer mechanism is designed to scale the Bank's public-sector lending capacity by three to four times the amount of the CSG in the areas of AI, digital transformation, energy, and critical minerals, where IDB strategy aligns with the Korean government's priorities.
• A new $300 million private-sector co-financing, jointly promoted by IDB Invest and the Export-Import Bank of Korea. The agreement focuses on mobilizing private capital for sustainable, high-impact projects in Latin America and the Caribbean. Korea will continue supporting IDB Invest and IDB Lab to boost private-sector development and innovation across the region.
• IDB Group job opportunities for Korean professionals, to join the IDB Group and contribute to development across Latin America and the Caribbean, including in leadership roles.

These initiatives build on the 20-year partnership that has delivered tangible results in Latin America and the Caribbean, providing electricity, water, sanitation, or digital services to more than 4 million households.

Over the past decade:

• The Korea Infrastructure Development Co-Financing Facility was expanded to nearly $2 billion in 2023, with nearly $1 billion already allocated alongside IDB loans
• Korea's Knowledge Sharing Program has translated development experience into action, supporting over 65 projects in energy, transportation, and government modernization.
• Trust funds have financed more than 600 technical cooperations, from smart cities in Brazil to digital connectivity in Honduras.

The Korea-IDB Group partnership aims to foster a new level of innovation and development, delivering mutual benefits for Korea and Latin America and the Caribbean.