Yoon Suk-yeol, the President of South Korea, has announced a plan to increase South Korea’s contribution to the International Development Association (IDA)’s 21st replenishment by 45%, amounting to approximately 845.6 billion KRW. This represents an increase of about 260.8 billion KRW compared to South Korea’s contribution during the IDA’s 20th replenishment in 2021, which was 584.8 billion KRW. President Yoon made this announcement during his speech at the G20 Summit session titled “Eradication of Poverty and Hunger,” held in Rio de Janeiro, Brazil, on November 18-19.
The IDA is an organization under the World Bank that provides long-term, low-interest loans or grants to low-income countries, with its funding replenished approximately every three years. South Korea’s proactive announcement aims to encourage other countries to join in increasing their contributions during the 21st replenishment when the final commitments will be disclosed at a meeting in Seoul this December.
The increase in funding is expected to enhance South Korea’s stake in the IDA and contribute to an increased share in the International Bank for Reconstruction and Development (IBRD). The upcoming December meeting marks a pivotal moment for South Korea, which has transformed from an IDA recipient country in the 1960s-1970s to a major donor country, ranked 15th among IDA donors based on the IDA20 metrics.
The World Bank has praised South Korea’s decision to expand its contributions amid the global crisis impacting low-income countries. It anticipates that this move will bolster South Korea’s role as a “key player” in the field of development finance.
During the G20 Summit, President Yoon participated in the inaugural ceremony of the Global Alliance to End Hunger and Poverty (GAAHP), along with other world leaders including Chinese President Xi Jinping and Brazilian President Luiz Inácio Lula da Silva, who hosted the event.