Korea's New $9 Million Commitment to the Korea-IFC Partnership Program Will Help Address the Global Climate Crisis

​WASHINGTON, D.C., July 28, 2021 - The Korea-IFC Partnership Program (KIPP) is expanding to include IFC projects in emerging markets with a focus on climate smart initiatives. KIPP's expansion comes as a result of a new $9 million commitment by the Government of Korea, reflecting the ambitions of both organizations to tackle the global climate crisis and accelerate the transition to low carbon development in those countries. 

Originally signed in 2018, KIPP has supported 10 IFC Advisory and Upstream projects globally, with a focus on infrastructure, public-private partnerships (PPPs), and information and communication technologies. The additional resources that Korea has committed will expand KIPP to include climate-smart applications. IFC and Korea will work jointly going forward to deploy resources in targeted ways that deliver on the new climate ambitions of the partnership.  

"IFC is delighted to continue our development partnership with Korea," said Emmanuel Nyirinkindi, Vice President, Cross-Cutting Solutions. "The additional focus on IFC's climate initiatives will build on the already innovative KIPP advisory and Upstream portfolio to help ensure that the program is addressing the most pressing barriers to private investment across emerging markets." 

"The new $9 million commitment to KIPP reaffirms Korea's strong support for the IFC's Upstream approach, improving market conditions in developing countries to attract private investment," said Kwangchul Ji, Director of the Development Finance Division, Ministry of Economy and Finance Korea. "We anticipate that the role of KIPP will be further strengthened by the inclusion of climate in the priority areas, in connection with Korea's Green New Deal and commitment to increase Green ODA contributions." 

Additionally, through the partnership, the Government of Korea has agreed to support five new projects totaling $2.4 million. These projects demonstrate the breadth and innovation that is made possible through KIPP with projects covering a range of industries and geographies.  

• Work Upstream to facilitate private investment in Uzbekistan's fertilizer sector;
• Bolster the enabling environment for electric vehicle manufacturing and deployment in Indonesia;
• Utilize digital applications and digital financial services to improve smallholder cocoa production in Indonesia;
• Facilitate private investment in Ghana's agricultural sector; and
  
• Revolutionize ESG investment in emerging markets by allowing asset managers and other institutional investors to screen target companies using IFC's ESG Standards as the risk management framework, powered by artificial intelligence

Since its inception, KIPP has facilitated knowledge exchanges in 20 countries, and benefitted from the expertise of almost 40 Korean companies and institutions.

About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.

For more information, visit www.ifc.org.

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