Ukraine will receive billions in aid from South Korea.

On May 17, Ukraine and South Korea signed a preliminary intergovernmental agreement on loans from the Economic Development and Cooperation Fund (EDCF).

Economy Minister Yulia Svyridenko said that Ukraine is on the list of priority countries for bilateral cooperation with Korea within the Official Development Assistance program framework. The first EDCF tranche for $300M will arrive in the summer or the beginning of autumn 2023. Moreover, the next tranche, of up to $3B, will become available in 2024, gradually increasing to $8B.

Funds will be raised 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 deferment of the repayment of the loan body. The Export-Import Bank of Korea will provide the loans under the EDCF.

Moreover, Korean Finance Minister Choo Kyung-ho and Svyridenko signed an agreement on a $130M aid package consisting of donations and loans.