SEOUL, June 5, 2012 /PRNewswire-Asia/ -- The Multilateral Investment Guarantee Agency (MIGA) -- the political risk insurance arm of the World Bank Group -- and Korean agencies have again teamed up to promote investment in developing countries by Korean firms. Today's signing of memoranda of understanding (MOUs) with the Ministry of Knowledge Economy and the Korea Development Bank -- two institutions instrumental to foreign direct investment initiatives -- is the latest step in strengthening this partnership.
Korean companies and financial institutions are increasing their focus on overseas projects and investments as part of their growth strategy. MIGA 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.
Recent MOUs were signed with the Korean Ministry of Land, Transport, and Maritime Affairs, and the Korea Eximbank. MIGA has already seen an uptick in inquiries from Korean investors for projects around the world, including in Africa, South Asia and the Middle East. The new MOUs signed today will further broaden the agency's support to Korean investors through cooperative marketing and business development.
Michel Wormser, MIGA's Vice President and Chief Operating Officer, welcomed the deepening of the relationship. "More and more Korean enterprises are looking into investing in emerging markets," he noted. "As a result, we will be reinforcing our support to these enterprises, through increased presence in Korea and by leveraging MIGA's Asia Hub." Wormser is visiting Korea to sign the MOUs and hold meetings with the Korean government and private sector.
Seok Cho, Vice Minister for Energy and Trade said, "The collaboration between our two institutions, to be accentuated further by MIGA's expanded Seoul presence, will allow Korean companies that are widely known for risk-taking to become even more proactive in the area of overseas investments by partnering with MIGA, thus benefiting directly the emerging economies around the world."
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment into emerging economies to support economic growth, reduce poverty, and improve people's lives. MIGA fulfills this mandate by offering political risk insurance (guarantees) to investors and lenders, covering risks including expropriation, breach of contract, currency transfer restriction, war and civil disturbance, and non-honoring of sovereign financial obligations.
MULTILATERAL INVESTMENT GUARANTEE AGENCY World BAnk Group
1818 H Street, NW, Washington, DC 20433
MIGA Contact
Mallory Saleson, msaleson@worldbank.org 1.202.473.0844
Rebecca Post, rpost@worldbank.org 1.202.473.1964
Cara Santos Pianesi, csantospianesi@worldbank.org 1.202.458.2097
www.miga.org
