ADB and South Korea Forge Strategic Energy and AI Partnership

Kanda’s visit, which included meetings with President Lee Jae Myung and Deputy Prime Minister Koo Yun Cheol, emphasized South Korea’s development trajectory as a blueprint for poverty reduction. Central to the energy discussions was the modernization of power grids, with Kanda noting that the ADB’s updated energy policy now creates pathways for cooperation on nuclear power—a sector where South Korea maintains significant technical proficiency.

Financial support for these initiatives gained momentum through a $1 billion cofinancing commitment from the Export–Import Bank of Korea and the Korea Trade Insurance Corporation. These funds, channeled through the ADB’s Critical Minerals-to-Manufacturing Financing Partnership Facility, aim to help resource-rich nations develop local manufacturing rather than merely exporting raw materials. A memorandum of understanding with the Uzbekistan Technological Metals Complex JSC serves as the initial test case for this strategy, pairing Uzbek mineral supply with Korean processing technology.

Beyond industrial infrastructure, the partnership addresses the digital divide. A $20 million contribution from South Korea will bolster ADB initiatives focused on AI-ready digital infrastructure and workforce training. These programs are designed to mitigate risks associated with cybersecurity and job displacement while equipping developing economies to harness artificial intelligence for systemic growth.