KOICA grants USD 2.5 million as an interest subsidy for Korea returnee

By A Staff Reporter,Kathmandu, Nov. 25: Korea International Cooperation Agency (KOICA) and Agricultural Development Bank Limited (ADBL), entered into an arrangement to implement the component 'Increased Access to Financial Support for Korea Returnee Migrants'.

The initiative is part of the Memorandum of Understanding (MoU) signed between the governments of Nepal and the Republic of Korea on September 23, 2022, under the project “Strengthening Stage-Wise Support System for the Stable Reintegration of Korea Returnee Migrants in Nepal.”

Mooheon Kong, CD of KOICA, and Govinda Gurung, CEO of the ADBL, signed the MoU in the presence of Dhani Ram Sharma, Joint Secretary of Ministry of Finance and Krishna Prasad Sapkota, Joint Secretary of the Ministry of Labour Employment and Social Security MoLESS.

The main objective of this programme is to create a stable environment for entrepreneurship by improving financial access for Korea returnee migrants in Nepal, according to a press statement of KOICA. 

For this, eligible Korea returnees will get subsidised loan from the ADBL. The loan will be subsidised for five years. 

KOICA will provide USD 2.5 million (approximately Rs. 320 million) for the Programme. KOICA’s contribution will be used solely for interest subsidies. 

ADBL will contribute approximately Rs. 1.2 billion as loan capital for the Programme. 

It is estimated that the Programme is expected to support approximately 200 to 250 Korea returnees with an average loan size of Rs. 5 million.  

The Programme will run from 2026 to 2028. The interest subsidy will be provided for the period of five years. 

Through this programme, Korea returnees will have full opportunity to employ their skills and establish successful enterprise that supports the local economy. 

In addition to this, local employment will be created. 

Speaking on the occasion, KOICA CD Mooheon Kong said that it is a shared commitment to empowering Nepali returnee migrants who have contributed their skills, labour and aspirations while working in Korea. 

As they return home, it is our collective responsibility to create an enabling environment where they can reintegrate with dignity, security and opportunities for long-term economic stability, he said.

Joint Secretary Sapkota said that Nepal and the Republic of Korea share a longstanding relationship grounded in cooperation, mutual respect, and a shared vision for human-centred development. 

"Our collaboration in the employment and migration sector especially through the Employment Permit System (EPS) has benefitted thousands of Nepali workers. As these workers return home with experience, skills, and aspirations for a better future, it becomes essential that we, as institutions, support their smooth and productive reintegration," he said.

Joint Secretary Sharma said that KOICA has always been a meaningful partner. Its cooperation has been meaningful and very much effective. 

ADBL CEO Gurung said that the programme is new and very much useful for returnee migrants who wish to start their own venture. 

He said that the ADBL will execute this programme successfully and look forward for such innovative programmes in the future.