The South Korean government plans to contribute 305.9 billion won ($281 million) to multinational lending organizations next year, a slight increase from this year’s 300.4 billion won, according to the Finance Ministry.

A large portion of the nation’s contributions to international society will be given to the World Bank and its lending arms.

The country plans to offer $35 million to the World Bank next year. This will increase the nation’s voting share in the financial institution to 1.63 percent in 2016 from 1 percent in 2010.

In 2010, the World Bank reformed its voting rights system, shifting voting power from industrial to developing nations. Consequently, emerging and developing countries such as China and South Korea were pushed to increase their financial contributions and assume more responsibility within the organization.

“The rise in voting power can increase a nation’s credit rating in international society and raise its voice in the policy direction of the World Bank,” said Byun Sung-man, an official at the Finance Ministry’s international organization division. 

Korea will also contribute $131 million to the International Development Association, an affiliate of the World Bank. Another $42.7 million will be provided for the Asian Development Fund, $34 million for the Asian Development Bank, $28 million for the African Development Fund and $8.2 million for the Multilateral Debt Relief Initiative.

The nation plans to contribute $7.3 billion to the International Monetary Fund when the organization’s quota reform is implemented.

The reforms were delayed due to strong opposition from the U.S. Congress, which has raised concerns about the nation’s power decline in the organization. If the reform takes effect, Korea’s voting power in the IMF will increase to 1.8 percent from the current 1.4 percent based on its larger financial contribution.

By Shin Ji-hye (shinjh@heraldcorp.com)