Seoul: South Korea plans to provide about 3 trillion won (US$2.01 billion) per year in low-interest loans for new overseas development projects over the next three years, the finance ministry said Monday. Under the 2026-2028 plan for the Economic Development Cooperation Fund (EDCF), the government set a target of approving an annual average of 3 trillion won for new projects designed to support the economic development of developing or less developed countries.

According to Yonhap News Agency, Seoul launched the EDCF program in 1987, providing long-term, low-interest loans to help spur economic and industrial growth in recipient countries. "Based on public trust, the vision seeks to contribute to shared growth between South Korea and partner countries," Finance Minister Koo Yun-cheol said of the latest plan, while attending a meeting of the EDCF management committee held in Seoul on the day, according to the finance ministry.

In line with the plan, authorities will introduce artificial intelligence (AI) elements into infrastructure projects financed by the EDCF. The government said it will first develop successful cases to improve operational performance, then gradually expand the use of AI to most other projects.

The plan also includes support for the development of cultural infrastructure in developing countries and promoting the global expansion of K-content, the ministry added. Additionally, the ministry said it will expand EDCF support to countries with high potential in strategic resources, such as critical minerals, to help secure supply chains.