Korea International Cooperation Agency (KOICA) and Agricultural Development Bank Limited (ADBL), signed an agreement to implement the component “Increased Access to Financial Support for Korea Returnee Migrants.”
This component falls under the Memorandum of Understanding (MoU) signed between the Government of the Republic of Korea and the Government of Nepal on September 23, 2022 for the project “Strengthening Stage-Wise Support System for the Stable Reintegration of Korea Returnee Migrants in Nepal.”
The Agreement was signed by Mooheon Kong, CD of KOICA and Govinda Gurung, CEO of the ADBL, where Dhani Ram Sharma, Joint Secretary of FACD, Ministry of Finance and Krishna Prasad Sapkota, Joint Secretary of the Ministry of Labor Employment and Social Security MoLESS signed the agreement as the witness.
The main objective of this program is to create a stable environment for entrepreneurship by improving financial access for Korea returnee migrants in Nepal. For this eligible Korea returnee will get subsidized loan from the ADBL. The loan will be subsidized for 5 years, reads a statement issued by KOICA.
KOICA will provide USD 2.5 million (approximately NPR 320,000,000) for the Program. KOICA’s contribution will be used solely for interest subsidies. ADBL will contribute approximately NPR 1.2 billion (1,200,000,000) as loan capital for the Program.
It is estimated that the Program is expected to support approximately 200 to 250 Korea returnees with an average loan size of Rs 5 million. The program will run from 2026 to 2028. The interest subsidy will be provided for the period of 5 years.
Through this program Korea returnees will have full opportunity to employ their skills and establish successful enterprises that support the local economy. In addition to this, local employment will be created.
In the event KOICA CD stated that it is a shared commitment to empowering Nepali returnee migrants who have contributed their skills, labor 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, according to KOICA.
In the event, Joint Secretary Sapkota stated that Nepal and the Republic of Korea share a longstanding relationship grounded in cooperation, mutual respect, and a shared vision for human-centered 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.
Similarly, Joint Secretary Sharma stated that KOICA has always been a meaningful partner. Its cooperation has been meaningful and very much effective.
ADBL CEO stated that the program is new and very much useful for returnee migrants who wish to start their own venture. He further stated that the ADBL will execute this program successfully and look forward to such innovative programs in the future.
