South Korea has invested 70 billion won ($62.79 million) in the South Korean-Myanmar Industrial Park in Yangon province, Myanmar.
In light of the current situation in Myanmar, the South Korean government has decided to suspend funding for infrastructure projects in the country until 2022, the Korea Herald reported on April 16.
South Korea’s Ministry of Planning and Finance and the Korea Economic Development Cooperation Fund temporarily suspended investment loans for new infrastructure projects by the Burmese government, the Korea Herald newspaper quoted an unnamed official at the Export-Import Bank of South Korea as saying.
“Consultations and negotiations between the two governments on new projects have ceased,” the official added. ”
The Korea Economic Development Cooperation Fund was established by the Korean Government to provide support for industrial development and economic stability in developing countries and to promote economic cooperation between Korea and these countries.
In September 2019, during President Moon’s visit to Myanmar, the Burmese government signed a framework agreement with the fund for concessional loans, and South Korea pledged $1 billion in loans for infrastructure construction in Myanmar.
The Korea Herald quoted an official at South Korea’s Ministry of Planning and Finance as saying that myanmar’s military had not yet decided whether to renew the agreements and memorandums of understanding signed by the previous South Korean and NLD governments, casting a shadow over all South Korean investment projects in the country.