Myanmar and South Korea have agreed upon a financing framework that will dole out loans totaling USD 1 billion. The loan will finance a wide range of infrastructure projects.

The agreement was signed by Union Minister for Investment and Foreign Economic Relations U Thaung Tun and South Korea’s Minister for Foreign Affairs Ms Kang Kyung-wha on September 3. Under the framework, South Korea will place the money into an economic development cooperation fund. The fund will finance nine projects in sectors such as agriculture, energy, water supply and transportation. Specific projects include the Myanmar – Korea Friendship Dala Bridge, linking the cities of Yangon and Dala, and an e-government integrated data center project. The most expensive project will be the Mandalay – Myitkyina railway, for which USD 700 million has been set aside.

The signing of the agreement coincided with a visit by South Korean President Moon Jae-in. After meeting with State Counsellor Daw Aung San Suu Kyi, the South Korean president said he hopes the framework will begin a stronger economic relationship between Myanmar and South Korea. He welcomed the possibility of further infrastructure agreements and trade deals.