Ukraine is included in the list of priority countries for bilateral cooperation with the Republic of Korea under the Official Development Assistance (ODA) program and will be able to receive the first tranche of up to $300 million from the Economic Development Co-operation Fund (EDCF) already in 2023 within three or four months from the signing of the second stage of the agreement, expected in a month, Ukraine's Ministry of Economy reported on Wednesday.

"The next tranche of up to $3 billion will become available in 2024 with a gradual increase in the limit to $8 billion as the pipeline of projects fills up. Ukraine will also be able to use Korean capacities and experience for the post-war restoration of destroyed infrastructure, industrial and civil facilities," First Deputy Prime Minister, Minister of Economy of Ukraine Yulia Svyrydenko said on Wednesday following the signing of a preliminary intergovernmental agreement on loans from EDCF, a special division of the Korean Export-Import Bank.

The event took place within the framework of the visit of the Ukrainian delegation with the participation of First Lady of Ukraine Olena Zelenska to the Republic of Korea.

As noted in the report, the funds will be attracted for a long-term period at minimal interest: the loan term can be up to 40 years at 0.15% per annum with a 10-year delay in repayment of the loan body. "We hope that in the coming weeks all the formalities will be completed and we will be able to present the first projects that can be financed by the Fund to the business communities of our countries," Svyrydenko added.

To attract financing for specific projects, separate loan agreements will be signed. For its part, the South Korean government can provide grants and technical assistance for project preparation and evaluation. It is also planned to open an EDCF office in Ukraine.

"We count on the active participation of Korean business in the post-war renewal of our country, and today's signing will attract significant investment from South Korea to accommodate new technological production facilities in strategically important sectors in Ukraine in partnership with global Korean corporations," Svyrydenko said.

EDCF was established by the Government of the Republic of Korea in 1987 to promote economic cooperation between Korea and developing countries. The Fund provides financial support to partner countries for their industrial development and economic stability.