The Inter-American Development Bank Group (IDB Group) and the Ministry of Economy and Finance of Korea have announced a new cooperation package designed to boost innovation, digital transformation, and sustainable development in Latin America and the Caribbean (LAC). The initiative, unveiled during the 7th Korea-LAC Business Summit in Seoul, celebrates 20 years of collaboration since Korea joined the IDB Group in 2005. Over the past two decades, this partnership has supported inclusive growth and innovation throughout the region.
IDB Group President Ilan Goldfajn highlighted Korea’s economic transformation as a model for success, emphasizing how the new cooperation package will connect Korea’s technological expertise with Latin America’s private sector to drive progress. Korea’s Deputy Prime Minister Yun Cheol Koo reaffirmed the country’s commitment to deepening financial cooperation and positioning Korea as a global hub for artificial intelligence (AI).
The new cooperation package focuses on five key sectors — AI and digital transformation, energy, critical minerals, infrastructure, and talent mobility. It includes the establishment of a Korea-IDB Group AI Hub in Seoul to accelerate financing and innovation in emerging technologies. An additional $20 million will be added to the Korea Fund at the IDB to support innovation initiatives, while innovative credit-substitution guarantees will expand IDB’s lending capacity in strategic areas. The package also includes a $300 million co-financing arrangement between IDB Invest and the Export-Import Bank of Korea to mobilize private investment for sustainable projects in the region. Furthermore, it will create job opportunities for Korean professionals within the IDB Group.
The announcement builds on a strong history of collaboration between Korea and the IDB Group. Their joint efforts have already improved access to essential services such as electricity, water, sanitation, and digital connectivity for over four million households in Latin America and the Caribbean. The partnership has also expanded the Korea Infrastructure Development Co-Financing Facility to nearly $2 billion, implemented over 65 knowledge-sharing projects, and financed more than 600 technical cooperations. With this new cooperation package, both partners aim to strengthen innovation, deepen economic ties, and support sustainable development across the region.
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