Article 1(Purpose) #
The purpose of this Act is to establish the Economic Development Cooperation Fund and provide for matters necessary for its operation and management in order to support industrial development and economic stabilization of countries on their way to development and to promote economic cooperation or interchange between the Republic of Korea and such countries.
[This Article Wholly Amended on May 2, 2011]
Article 2(Definitions) #
The terms used in this Act are defined as follows: <Amended on Oct. 1, 2025>
1. The term "developing country" means any country in the process of economic development and designated as such by the Minister of Finance and Economy in consideration of its economic development stage, including the level of per capita income and industrial structure, after due deliberation by the Fund Management Council under Article 10;
2. The term "bank" means any bank under the Banking Act or any other relevant Acts.
[This Article Wholly Amended on May 2, 2011]
Article 3(Establishment of fund) #
The Government hereby establishes the Economic Development Cooperation Fund (hereinafter referred to as the "Fund") to secure and provide funds for economic cooperation with other countries.
[This Article Wholly Amended on May 2, 2011]
Article 4(Financial resources of fund) #
The Fund shall be raised from the following financial resources:
1. Contributions by the Government;
2. Contributions by public institutions under the Act on the Management of Public Institutions prescribed by Presidential Decree, or economic organizations;
3. Contributions from other government funds;
4. Long-term borrowings pursuant to Article 5;
5. Deposits from the Public Capital Management Fund under the Public Capital Management Fund Act;
6. Profits from the operation of the Fund.
[This Article Wholly Amended on May 2, 2011]
Article 5(Long-term borrowings) #
The Minister of Finance and Economy may, when it is deemed necessary, incur long-term debts from other funds, banks, foreign governments, foreign financial institutions, international financial organizations, etc. at the expense of the Fund, in order to raise funds for the Fund. <Amended on Oct. 1, 2025>
[This Article Wholly Amended on May 2, 2011]
Article 6 #
Deleted. <Dec. 31, 1993>
Article 7(Use of fund) #
The Fund shall be operated for any of the following purposes: <Amended on Jan. 27, 2016>
1. Extending loans (which include discounts on bills, guaranteeing obligations and underwriting securities, and are hereinafter referred to as "loans, etc.") or investments for the purpose of conducting projects deemed particularly important to contribute to the industrial development of developing countries and to promote economic exchange between the Republic of Korea and such countries (hereinafter referred to as "cooperation projects");
2. Extending loans, etc. required to conduct investigations for the preparation of the cooperation projects or a trial run of such projects;
3. Extending loans, etc. required for the developing countries' importation of commodities deemed particularly important to stabilize the national economies of such countries from the Republic of Korea;
4. Extending loans, etc. for projects conducive to the industrial development of developing countries and determined as such by Presidential Decree;
5. Compensating for any loss incurred from loans extended by the Export-Import Bank of Korea under the Export-Import Bank of Korea Act (hereinafter referred to as "Export-Import Bank of Korea") to developing countries for conducting the duties under Article 18(5) of the same Act, where the interest rates on such loans are lower than their associated costs;
6. Repaying the principal of and interest on deposits received from the Public Capital Management Fund under the Public Capital Management Fund Act and borrowings;
7. Paying expenses to raise, operate and manage the Fund.
[This Article Wholly Amended on May 2, 2011]
Article 8(Requirement for assistance from fund) #
Assistance from the Fund under subparagraphs 1 through 4 of Article 7 shall be made available only in cases where it is deemed difficult to obtain financial support from the Export-Import Bank of Korea or other banks under ordinary terms and conditions. <Amended on Jan. 27, 2016>
[This Article Wholly Amended on May 2, 2011]
Article 9(Operation and management of fund) #
(1) The Fund shall be managed and operated by the Minister of Finance and Economy. <Amended on Oct. 1, 2025>
(2) The Minister of Finance and Economy may entrust the Export-Import Bank of Korea with affairs concerning the operation and management of the Fund, as prescribed by Presidential Decree. <Amended on Oct. 1, 2025>
[This Article Wholly Amended on May 2, 2011]
Article 10(Fund Management Council) #
(1) There is hereby established a Fund Management Council within the Minister of Finance and Economy to deliberate on the following matters regarding the operation and management of the Fund: <Amended on Oct. 1, 2025>
1. Basic policies concerning the operation and management of the Fund;
2. Fund operational plans;
3. Settlement reports;
4. Other matters deemed necessary by the Minister of Finance and Economy.
(2) The composition and operation of the Council and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended on May 2, 2011]
Article 11(Temporary borrowings) #
(1) The Minister of Finance and Economy may, when it is deemed necessary for the operation of the Fund, borrow funds temporarily from the Bank of Korea under the Bank of Korea Act or other banks, at the expense of the Fund. <Amended on Oct. 1, 2025>
(2) The temporary borrowings pursuant to paragraph (1) shall be repaid within the relevant fiscal year.
[This Article Wholly Amended on May 2, 2011]
Article 12(Use of surplus funds) #
When there are any surplus funds in the Fund, the Minister of Finance and Economy may use them as follows: <Amended on Oct. 1, 2025>
1. Purchase of national bonds, public bonds and any other securities;
2. Deposit at the Public Capital Management Fund under the Public Capital Management Fund Act;
3. Deposit at banks or short-term lending;
4. Other methods as prescribed in Presidential Decree.
[This Article Wholly Amended on May 2, 2011]
Article 13(Accounting agency of fund) #
(1) The Minister of Finance and Economy shall appoint the Fund revenue collection officer, the Fund financial officer, the Fund disbursing officer and the Fund accounting official from among public officials under his or her supervision to conduct business related to the receipt and disbursement of the Fund. <Amended on Oct. 1, 2025>
(2) Where business concerning the operation and management of the Fund is entrusted to the Export-Import Bank of Korea in accordance with Article 9(2), the Minister of Finance and Economy may appoint the director taking charge of the Fund revenue and the director taking charge of the causative acts of the Fund from among directors of the Export-Import Bank of Korea, and the Fund disbursing employee and the Fund accounting employee from among its employees. In such cases, the director taking charge of the Fund revenue, the director taking charge of the causative acts of the Fund expenditure, the Fund disbursing employee and the Fund accounting employee shall conduct the duties of the Fund revenue collection officer, the Fund financial officer, the Fund disbursing officer, and the Fund accounting official, respectively. <Amended on Oct. 1, 2025>
[This Article Wholly Amended on May 2, 2011]
Article 14(Disposition of profits and losses) #
(1) When a profit accrues as a result of the settlement of accounts of the Fund, the full amount of such profit shall be placed in reserve.
(2) When a loss is incurred as a result of the settlement of accounts of the Fund, such loss shall be made up by the reserve under paragraph (1), and if the reserve is insufficient, the Government may make up such insufficiency within the budget.
[This Article Wholly Amended on May 2, 2011]
Article 15(Supervision and orders) #
Where business affairs relating to the operation and management of the Fund is entrusted in accordance with Article 9(2), the Minister of Finance and Economy may supervise the entrusted business and issue orders necessary therefor. <Amended on Oct. 1, 2025>
[This Article Wholly Amended on May 2, 2011]