MIGA Teams Up with Korean Export Insurance Corporation: Agreement to encourage Korean investment into developing countries
WASHINGTON, DC, May 21, 2001 — The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, and the Korean Export Insurance Corporation (KEIC) said today they will join forces to encourage Korean companies to invest in developing countries.
The two signed a Memorandum of Understanding outlining their plans to work together to identify possible projects for guarantee coverage, and provide co-insurance and reinsurance for projects guaranteed by one of the entities. The agreement is the first between the two organizations and the 17th such accord signed by MIGA.
"This agreement embodies our commitment to partner with public and private sector insurers to really encourage investment in those countries that need it most," said MIGA's Executive Vice President, Motomichi Ikawa. "This partnership will go a long way toward increasing the awareness of Korean companies of the many investment opportunities that exist in developing countries."
"We believe this collaboration will play a strong role in increasing the capacity of the political risk insurance market to provide coverage to Korean investors," said KEIC Chairman and President, Tai-Jin Lim. "We look forward to collaborating with MIGA in this endeavor."
MIGA was formed in 1988 to encourage foreign direct investment into developing countries by providing political risk insurance against such risks as transfer restriction, expropriation, breach of contract, and war and civil disturbance. MIGA also offers investment marketing services to help developing member countries promote their own private investment opportunities more effectively. Since its inception, MIGA has issued more than 500 guarantees and more than $7.7 billion in coverage, facilitating nearly $39 billion in foreign direct investment.
Korea Export Insurance Corporation has been committed to promoting sound overseas transactions since its establishment in July 1992. The corporation compensates those losses incurred in export transactions and overseas investments which cannot be handled by the general insurance systems, and provides precise, diverse information to its customers. During 2000, its export insurance underwritten amounted to $30 billion, and supported 17.9 percent of Korea's total exports.