Korea - Program Loan : Loan 1094 - Press Release - Conformed

t:IONAL a.?V WORLD BANK INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT / 1818 H STREET, N.W., WASHINGTON -D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank News Release No. 75/17 March 27, 1975 $100 MILLION LOAN TO SUPPORT KOREA'S DEVELOPMENT PROGRAMS A World Bank loan of $100 million to Korea will provide urgently needed foreign exchange to pay for essential imports by Korea's private sector. These imports will consist mainly of capital and intermediate goods for export industries. At present, approximately 90% of Korea's exports consists of manufactured goods. Increase in manufactured exports, from about $60 million in 1964 to about $2,800 million in 1973, has been a key factor in the rapid growth of the Korean economy. With the present slump in international trade, the Korean Government is taking measures to maintain growth and strengthen the balance of payments. Vigorous efforts are being made to diversify both the industrial structure and export markets. The borrowing from the World Bank is part of Korea's overall program to meet its foreign exchange needs in 1975. The program includes borrowing from official and commercial sources, and continued substantial private investment. The Bank loan of $100 million is being made to the Republic of Korea for a term of 20 years, including five years of grace, with interest at 8-1/2% per annum. The Korea Exchange Bank, which acts as the Government's foreign exchange bank, will handle withdrawal applications under the loan. Note: Money figures are expressed in US dollar equivalents.