MIGA, Korea sign pacts to up investment into developing countries

The Multilateral Investment Guarantee Agency (MIGA) and two Korean government agencies have teamed up to promote investment in developing countries by Korean firms.

To this end, the political risk insurance arm of the World Bank Group on June 4, 2012 signed memoranda of understanding (MoUs) with the Korean Ministry of Knowledge Economy and the Korea Development Bank to strengthening the partnership.

The two Korean institutions are said to be instrumental to foreign direct investment initiatives in that country.

Korean companies and financial institutions are increasing their focus on overseas projects and investments and MIGA in a statement said it “can support eligible investors and offer significant credit enhancement through its political risk insurance—allowing companies to diversify their financing sources, reduce the cost of capital, and mitigate country risk”.

MIGA recently signed MoUs with the Korean Ministry of Land, Transport, and Maritime Affairs, and the Korea Eximbank. The new MoUs signed will further broaden the agency’s support to Korean investors through cooperative marketing and business development, the agency said.

Michel Wormser, MIGA’s Vice President and Chief Operating Officer who welcomed the deepening of the relationship said “More and more Korean enterprises are looking into investing in emerging markets…we will be reinforcing our support to these enterprises, through increased presence in Korea and by leveraging MIGA’s Asia Hub.”

Korean investments are mostly focused in Africa, South Asia and the Middle East.

By Ekow Quandzie