KOICA Grants USD 2.5 Million as Interest Subsidy for Korea Returnee Migrants

EDUCAST, The Korea International Cooperation Agency (KOICA) and the Agricultural Development Bank Limited (ADBL) have formally entered into an agreement to implement the program titled “Increased Access to Financial Support for Korea Returnee Migrants.” The initiative is part of the Memorandum of Understanding (MoU) signed between the Government of the Republic of Korea and the Government of Nepal on September 23, 2022 under the broader project “Strengthening Stage-Wise Support System for the Stable Reintegration of Korea Returnee Migrants in Nepal.”

The agreement was signed by Mr. Mooheon Kong, Country Director of KOICA, and Mr. Govinda Gurung, CEO of ADBL. The ceremony was witnessed by Mr. Dhani Ram Sharma, Joint Secretary at the Ministry of Finance, and Mr. Krishna Prasad Sapkota, Joint Secretary at the Ministry of Labor, Employment and Social Security (MoLESS).

The primary objective of the program is to create a stable entrepreneurial environment for Korea returnee migrants by enhancing their access to financial resources in Nepal. Under the scheme, eligible returnees will receive subsidized loans from ADBL, with the interest subsidized for a period of five years.

KOICA will provide USD 2.5 million (approx. NPR 320 million) exclusively for interest subsidies, while ADBL will contribute NPR 1.2 billion as loan capital. The program aims to support 200–250 Korea returnees, with the average loan size expected to be around NPR 5 million.

This three-year program will run from 2026 to 2028. It is expected to help returnee migrants utilize their skills, establish sustainable enterprises, and contribute to local job creation and economic development.

During the event, KOICA’s Country Director highlighted the shared commitment of both nations to empower Nepali workers who have contributed significantly while working in Korea. Joint Secretary Sapkota emphasized the long-standing Nepal–Korea relationship, particularly in the employment and migration sector via the EPS system. Joint Secretary Sharma praised KOICA as a consistent and effective development partner. ADBL’s CEO stated that the program is innovative, impactful, and will be executed successfully, with hopes for similar collaborations in the future.