Fund Operation Committee

Open To Public
Item ① (Decided)

Year 2024 ~ Year 2026

EDCF Mid-Term Operation Plan

2024. 2. 7.

Ministry of Economy and Finance

The below contents are extracted from the ‘EDCF Mid-Term Operation Plan’.

3 EDCF Procedure Improvement

(Shorten the Timeframe) Current 4 years’ timeframe from a Project Approval ~

1 Contract reduce to 2 years and 9 months by simplifying procedure, clarifying
requirements*, and others

*(Example) Ease of requirements for legal opinions in recipient countries (allowing opinions
from relevant ministries other than the Ministry of Justice), ease of requirements for prior
consent to change procurements, and distribution of EDCF guidebooks, etc.

Effect of Shortening the Time Required for Each Project

Current Avg. 12 M Avg. 14M Avg. 22M

Project Loan Consultant Procurement

Approval Agreement Contract Agreement
Target 6M 6.5M 20.5M

(Alleviating Corporate Difficulties) The risk of exchange rate fluctuations, inflation,

2 and tax burden of recipient countries, which are difficulties that Korean companies
repeatedly raise, are actively resolved.

Current
 Binding loans are subject to foreign
exchange risks by companies based on
the principle of KRW-denominated loans
 With the limited contingency budget,
project cost shortages were frequently
witnessed due to inflation
Improvement
 Support for foreign currency-
denominated loans with more than 80%
of local currency by establishing a foreign
currency safe
 Reflect realistic contingency budget by
revising the guidelines for preparing a
Feasibility Study(F/S)

 Provision of analysis of taxation in

 Due to the different tax systems in
recipient countries, clarification of loan
recipient countries, the risk of tax charges
contracts, and provisions for bidding
is high
documents