The initial agreement allowing South Korea to offer low-interest loans to Ukraine was signed in Seoul, marking a formal step in financial cooperation between the two nations. The arrangement, announced by the South Korean Ministry of Economy and Finance, leverages the South Korea Economic Development and Cooperation Fund as the mechanism for delivering these loans. Under the terms of the accord, the loan package will come into effect once all legal procedures are completed and the official signing ceremony is finalized by both sides. In addition, the two countries will work together to identify projects that will receive funding, ensuring that the allocations align with shared development goals.
The Ministry of Economy and Finance emphasizes that the fund is designed to support the economic and industrial advancement of developing nations. Deputy Prime Minister Choo Kyung-ho described the partnership as a way for Seoul to assist Ukraine in its broader economic recovery and resilience as it moves into its post-crisis phase. The collaboration is framed as part of a long-term effort to bolster Ukraine’s economic stability and industrial growth through targeted financial support.
During a prior visit to Seoul, the wife of Ukraine’s president raised questions about the potential provision of air defense capabilities and the transfer of modern technologies. The discussions touched on the possibility of supplying air defense facilities to Kyiv and facilitating access to advanced technical know-how, reinforcing the broader economic and security cooperation agenda between the two nations.