MIGA and Korean Ministry Set Sights on Increasing Investment into Developing Countries
View the press release in Korean
SEOUL and WASHINGTON, DC, November 18, 2011—The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, and the Korean Ministry of Land, Transport, and Maritime Affairs (MLTM), have teamed up to augment their promotion of investment in developing countries by Korean firms. In Gwacheon City today, the organizations signed a Memorandum of Understanding (MoU) underlining this commitment. The MoU was signed by MIGA Executive Vice President Izumi Kobayashi and Deputy Minister Chung Naesam from MLTM.
It aims to strengthen collaboration between MIGA and the MLTM, in particular through efforts to raise awareness about risk-mitigation instruments such as political risk insurance with joint conferences, seminars, and training. The organizations also plan to engage in cooperative marketing and business development to support Korean investors.
Kobayashi welcomed the strengthened relationship between MIGA and the Ministry. "Many of us admire Korea's economic engine, created through hard work and commitment, that has brought increased prosperity for the country," she said. "Especially given the current economic uncertainties in other parts of the world, Korea has a critical role to play in expanding its investment across borders—creating infrastructure and jobs that increase development."
Chung Naesam also welcomed the agreement, "Through this cooperation, the Ministry is introducing an expanded menu of risk-mitigation instruments and knowledge-sharing to Korean companies." He added, "As Koreans continue to look outward for their direct investment plans, a strong partner like MIGA is invaluable to helping them understand and manage the inherent risks."
MIGA provides insurance against political risks for eligible investments made by investors from a MIGA member country into a developing member country. The types of investments the agency can cover include equity, shareholder loans, certain non-shareholder loans, certain shareholder loan guarantees, management contracts, asset securitizations, capital market bond issues, and leasing, services, franchising and licensing agreements. Projects supported by MIGA have a strong developmental impact through job creation, skills and technology transfer, and assisting countries to tap natural resources in an environmentally sustainable way. Specifically, they provide water, electricity, and other basic infrastructure, generate tax revenues, and help strengthen financial systems.
Korea’s Ministry of Land, Transport, and Maritime Affairs established a Global Infrastructure Fund (GIF) in 2010 with $400 million raised by private investors and public funds. The GIF supports equity or debt investment in infrastructure development projects throughout the world, such as roads, railways, ports and power stations, in which Korean contractors may participate. GIF has employed Shinhan Bank as a financial advisor and aims to increase its fund size to $2 billion USD by 2015 with the full supports of the Korean government.
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433
Mallory Saleson, MIGA
Tel: +1 202 473-0844
Rebecca Post, MIGA
Tel: +1 202-473-1964
Cara Santos Pianesi