Korea Contributes US$15 Million to IMF Capacity Development Activities

December 5, 2013

Press Release No. 13/487
December 5, 2013

International Monetary Fund (IMF) Managing Director Christine Lagarde and Korean Deputy Prime Minister and Minister of Strategy and Finance Oh-Seok Hyun signed a Letter of Understanding today on Korea’s contribution to IMF capacity development programs. Korea is providing US$15 million over five years to support technical assistance and training for IMF member countries.

Korea has been a long-standing supporter of IMF technical assistance and training, most notably with contributions to the Pacific Financial Technical Assistance Center since 2004 and the Topical Trust Fund on Anti-Money Laundering and Countering the Financing of Terrorism since 2009. The contribution of US$15 million over five years, along with the establishment of a Korea Subaccount at the IMF, elevates Korea’s profile as a donor to the IMF’s capacity development activities.

“Today marks the beginning of a new stage in the strategic partnership between Korea and the IMF on capacity development. This new contribution of $15 million over the next five years will help the IMF to meet the demands of member countries for our technical assistance and training initiatives,” Ms. Lagarde said at a signing ceremony in Seoul, Korea.

“Capacity building laid the groundwork for Korea’s full-fledged development. We hope that the new Korea Subaccount will add significant value to technical assistance and training for beneficiary countries, while enhancing cooperation between Korea and the Fund,” Deputy Prime Minister Hyun said at the ceremony.

Donor support has allowed the IMF to respond effectively to increased demand for capacity development since the onset of the recent global financial crisis. Korea’s contribution will assist beneficiary countries in building stronger institutions and capacity to implement sound economic policies. Both are critical for promoting economic growth, reducing poverty, and managing the effects of global uncertainties. The IMF, beneficiary countries, and Korea will work in close consultation on the design, approval, and implementation of the programs financed by Korea.

Background Information

Korea has supported two multi-donor initiatives of the IMF, providing US$1 million to Phase I of the topical trust fund on Anti-Money Laundering and Combating the Financing of Terrorism since 2009, and US$3.3 million to the Pacific Financial Technical Assistance Center since 2004.

The IMF provides capacity development assistance to member countries through technical assistance and training, in addition to conducting economic and financial surveillance and lending operations. The IMF’s technical assistance helps member countries develop more effective institutions, legal frameworks and policies to promote economic stability and growth; while training strengthens the capacity of member countries’ officials to analyze economic developments and formulate and implement effective policies.

Web links:

Factsheet: IMF Technical Assistance: http://www.imf.org/external/np/exr/facts/tech.htm

Factsheet: IMF Training Centers: http://www.imf.org/external/np/exr/facts/training.htm

Factsheet: Regional Technical Assistance Centers: http://www.imf.org/external/np/exr/facts/afritac.htm

Pacific Financial Technical Assistance Center: http://www.pftac.org/

IMF Institute for Capacity Development: http://www.imf.org/external/np/ins/english/about.htm

Press Release: IMF Anti-Money Laundering and Combating the Financing of Terrorism Trust Fund: http://www.imf.org/external/np/sec/pr/2009/pr09108.htm

Print quality IMF photos: http://www.flickr.com/photos/imfphoto

Media contact: Keiko Utsunomiya, kutsunomiya@imf.org


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