SEOUL– South Korea’s foreign ministry said Monday it will expand foreign aid spending next year to help tackle global health challenges and establish an economic security center meant to bolster its capacity to handle supply chain issues.
The National Assembly on Friday approved slightly more than 3 trillion won (US$2.5 billion) of the 2022 budget for the ministry, up 5.8 percent from this year.
The official development assistance (ODA) budget jumped 16.7 percent on-year to 1.1 trillion won, as the ministry seeks to help developing nations overcome the COVID-19 pandemic and deepen exchanges with countries in Latin America, the Middle East and Africa.
It includes a $1 billion grant toward the COVAX Advance Market Commitment (AMC), a U.N.-backed financing mechanism intended to make COVID-19 vaccines available at low cost for more than 90 developing countries with relatively low incomes.
It is the first time for the ministry’s annual budget to surpass 3 trillion won and its ODA spending over 1 trillion won.
The ministry also set aside 2.55 billion won for creating an economic security center early next year in a bid to better cope with supply chain disruptions and detect emerging risks at an early stage
The envisioned body comes in response to growing calls for the government’s bigger role in securing a stable supply chain following a supply shortage of urea solution used in diesel vehicles, mostly imported from China, and an intensifying competition between the U.S. and China.
Meanwhile, the ministry slashed the ODA budget for Myanmar by 86 percent to 2.29 billion won amid concerns about human rights abuses by the military junta, which seized control of the Southeast Asian nation in February.
It also cut the funding for Afghanistan by 65 percent to 430 million won due to increased uncertainties after the Taliban took over the war-torn nation following the withdrawal of U.S. troops in August. The ministry said it will continue to support projects operated by U.N. agencies in the nation.
Source: Yonhap News Agency