Republic of Korea Pledges Grant Assistance of Over $11 Million to Nepal

The Republic of Korea and Nepal have today signed two MoUs worth USD 11.8 million to strengthen agricultural value chains and legal information services.

The Government of Nepal (GoN), represented by the Ministry of Finance (MoF), have officially signed two Memorandum of Understanding (MoUs) totaling USD 11.8 million in grant assistance.

The two projects, to be implemented through KOICA and relevant partner institutions, will support agricultural value chain development and improved public access to legal information in Nepal, the Embassy of Korea stated in a press release.

The MoUs were signed by Taeyoung Park, Ambassador of the Republic of Korea to Nepal, and Ghanshyam Upadhyaya, Secretary of the Ministry of Finance, Government of Nepal.

The larger initiative, titled the “Value Chain Development for Fruits and Vegetables Project, 2nd Phase in Nepal,” allocates USD 10 million in grant assistance from 2025 through 2031 to support agricultural value chain development and sustainably increase the incomes of smallholder farmers in six districts of Lumbini Province, including Banke, Dang, Kapilvastu, Rupandehi, Palpa, and Gulmi.

Implemented by KOICA in partnership with the Ministry of Agriculture, Forests and Environment, the provincial ministry, and the Directorate of Agriculture Development, Phase II aims to boost smallholder farmers’ incomes by improving support systems, introducing market demand-based production strategies, and disseminating field-applicable post-harvest technologies.

Concurrently, the “Project for Establishing Nepal Law Information Pilot System” will provide USD 1.8 million in grant assistance to develop a centralized and user-friendly digital platform for managing and accessing Nepal’s legislative records.

Implemented in partnership with the Ministry of Law, Justice and Parliamentary Affairs, the Ministry of Government Legislation of the Republic of Korea, and the Korea Law Information Service, the project will support business process improvements, database development, essential IT infrastructure, and capacity building to enable sustainable system operation by Nepali authorities.

In the signing ceremony, Finance Secretary Upadhyaya appreciated Korea’s development assistance in Nepal. He stated that Korea’s development cooperation has always been supportive and relevant in achieving Nepal’s national development initiatives. Ambassador Park stated the both of these projects represent a comprehensive transfer of Korean expertise.

Through KOICA, will be dispatching highly qualified Korean experts to collaborate side-by-side with their Nepali counterparts. The Government of Korea has long championed this approach through targeted capacity-building initiatives by inviting senior officials and working-level practitioners.

These two projects reflect the enduring partnership between Korea and Nepal and shared commitment to Nepal’s sustainable development. He expressed confidence that the friendship and cooperation between the two countries would continue to deepen and expand in the years ahead with newly formed administrations and leadership in Nepal.

KOICA Country Director Mr. Kong stated that the second phase of the fruit and vegetable value chain project would build upon the existing partnership in Lumbini Province and contribute to sustainable income growth for smallholder farmers. He added that the Nepal Law Information Pilot System would improve public access to legal information and strengthen the institutional foundation for digital legal services.

Since 1991, the Government of the Republic of Korea, through KOICA, has been a key development partner of Nepal, supporting various sectors such as health, education, agriculture, vocational training, rural development, and digital transformation. KOICA has provided approximately USD 235 million in assistance to Nepal to date.

KOICA continues to work with government officials, civil society, academia, the private sector, and development partners to support Nepal’s sustainable development priorities. The Government of the Republic of Korea plays a vital and multifaceted role in Nepal’s economy, spanning development assistance, employment programmes, foreign direct investment (FDI), and technological cooperation.

The Government of Korea has consistently supported Nepal’s socio-economic development and has grown into a strong partnership rooted in mutual cooperation, goodwill, and cultural affinity.

The Government of the Republic of Korea, through the Korea International Cooperation Agency (KOICA) and agricultural innovation bodies, has significantly prioritized agricultural development, food security, and value chain enhancement in Nepal. (RSS)