The South Korean government announced its second supplementary budget to finance the domestic emergency relief fund addressing COVID-19. Amounting to KRW7.6 trillion (US$6.2 billion), the supplementary budget also called for adjustments in other sectors including official development assistance (ODA). The supplementary budget includes reductions to the 2020 ODA budget of KRW276.7 billion (US$227 million), primarily from concessional loans and overseas volunteer programs that were suspended due to COVID-19 lockdown in partner countries. Details of the cuts are as follows:
- Cuts to concessional loans: KRW200 billion (US$164 million);
- Cuts to bilateral ODA projects: KRW14 billion (US$12 million);
- Cuts to overseas volunteer programs: KRW36 billion (US$30 million);
- Cuts to global fellowship programs: KRW11 billion (US$9 million); and
- Cuts to administrative support for the Green Climate Fund: (KRW6.5 billion (US$5 million).
Of the US$227 million in cuts to the ODA budget, the supplementary budget cut US$50 million from the Ministry of Foreign Affairs (MOFA). In response to the cut, MOFA stated that it will increase humanitarian assistance to partner countries affected by COVID-19.
The Ministry of Economy and Finance (MOEF), which is in charge of concessional loans, also faced a budget cut of KRW200 billion (US$164 million). In response, MOEF has announced the following measures to support partner countries:
- Provision of US$400 million in ODA to strengthen COVID-19 healthcare systems in partner countries;
- Suspension of repayment on US$110 million worth of loans extended to 26 partner countries;
- Doubling of the amount of ODA to South Korea's 'New South' and 'New North' policies to US$7 billion for the next three years, with an increased focus on global health cooperation; and
- Support for economic cooperation with Russia and Uzbekistan.
In addition to these measures, South Korea will also set up a task force with 12 ministries and five governmental organizations to support global efforts to fight COVID-19.
News article – Yonhap news (in Korean)
Press release - South Korean Ministry of Economy and Finance
Press release - South Korean Ministry of Economy and Finance