Japan has agreed to provide South Korea...
Japan has agreed to provide South Korea with a low-interest untied loan of up to $53 million to finance economic and social projects.
The Foreign Ministry said $9.9 million will be used for construction and expansion of the Daecheong multipurpose dam in a suburb of Dajeon. It said $42.8 million will be set aside for modernization and expansion of small- and medium-size manufacturing industries.
The loan to be extended under Japan’s official development aid program carries an annual interest rate of 4%, the ministry said.
The loan for the dam project will be due in 25 years, including a seven-year grace period, while that for industry modernization will be due in 20 years, including a seven-year deferment period, the ministry said.
The new loan is part of a $1.85-billion aid package Japan pledged to South Korea in 1983, the ministry said.
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