Chairman Kim to discuss measures for low carbon-based growth at high-level aid forum in Busan


Korean policymakers are paying close attention to green growth at home and abroad as one of the nation’s future development engines.

The 4th High Level Forum on Aid Effectiveness, slated for Nov. 29-Dec. 1 at the BEXCO in Busan, is expected to be an opportunity for the nation to take the initiative in emphasizing the need for global cooperation on green growth.

Kim Yong-hwan, chairman and president of Export-Import Bank of Korea, is scheduled to deliver a speech which will stress the nation’s resolve toward global development by supporting emerging countries’ low carbon-based growth projects.

The 59-year-old Eximbank chairman, a panel member for the Climate Finance Session of the forum, will discuss a variety of issues with ministerial officials from other countries.

“Though Korea is a behind player in green growth, it is time to actively invest in the sector to catch up with the global direction,” Kim told The Korea Herald.

He cited the case of Japan hesitating to invest in the shipbuilding industry, while Korea was active in investment and became the world’s No. 1.

“Conglomerates should not slash their investments in green growth projects despite the global economic slowdown.”

He stressed that more and more underdeveloped countries have already acknowledged the significance of growth with little damage to the environment.

At the global forum in Busan, the chairman plans to notify panel members of the Korean government’s long-term plan to invest in an overseas carbon fund.

The Ministry of Strategy and Finance, in its 2010 operation courses on the Economic Development Cooperation Fund, unveiled its plan to raise $20 million (23 billion won) for the Future Carbon Fund to be launched by the Asia Development Bank over the next four years ― $5 million per annum.

Under the commitment, the country is expected to take over carbon emission rights.

“Under the state project, Korea Eximbank is expected to join global aid for green growth in developing nations and Korean companies’ further advancements into overseas markets,” Kim said.

Concerning global aid to underdeveloped countries, he said Asian countries have recently been playing a bigger role on the global stage.

Kim, who took office as chairman early this year, has been coordinating policies with counterparts from major Eximbanks.

“Further, commercial banks’ role in global financing has been curtailed due to higher global standards for risk management following the 2008 global financial crisis,” he said.

“I believe state-run banks should make up for commercial banks’ weaknesses.”

He said a group of Central and South American countries have expressed their willingness to make the most of the fund, called EDCF, provided by Korea Eximbank, for infrastructure development.

He has continued to stress the importance of linking Korean enterprises with South American countries ― Brazil in particular ― ahead of the 2014 World Cup finals and 2016 Summer Olympic Games in the country.

Aside from green growth, the EDCF from Korea Eximbank is being allocated for establishing schools, hospitals, dams, water supply and sewage systems and irrigation facilities in emerging and underdeveloped nations.

The number of participants in the High Level Forum on Aid Effectiveness is projected to reach about 2,000. They will include U.S. Secretary of State Hillary Clinton.

Born in 1952 in Boryeong, South Chungcheong Province, Eximbank chairman Kim started his career as a public official in 1980 after graduating from SungKyunKwan University.

While working at the Finance Ministry in the 1980s and 1990s, he served for the Financial Services Commission as a standing commissioner and the Financial Supervisory Service as the senior deputy governor after 2000.

By Kim Yon-se (kys@heraldcorp.com)