KOICA grants $2.5 million as an interest subsidy for Korea Returnee

Korea International Cooperation Agency (KOICA) and Agricultural Development Bank Ltd (ADBL), entered into an arrangement to implement the component 'Increased Access to Financial Support for Korea Returnee Migrants', which is envisioned by the Memorandum of Understanding (MoU) signed between the Government of the Republic of Korea and Nepal for the project 'Strengthening Stage-Wise Support System for the Stable Reintegration of Korea Returnee Migrants in Nepal.'
The agreement was signed by Country Director of KOICA Mooheon Kong and CEO of the ADBL Govinda Gurung, where joint secretary of FACD, Ministry of Finance Dhani Ram Sharma and joint secretary of the Ministry of Labour Employment and Social Security MoLESS Krishna Prasad Sapkota signed the agreement as the witness.
The main objective of this programme is to create a stable environment for entrepreneurship by improving financial access for Korea returnee migrants in Nepal, according to KOICA press nopte. "For this eligible Korea Returnee will get subsidised loan from the ADBL. The loan will be subsidized for 5 years."
KOICA will provide $2.5 million (approximately Rs 320,000,000) for the Programme. KOICA’s contribution will be used solely for interest subsidies. ADBL will contribute approximately Rs 1.2 billion as loan capital for the Programme.
It is estimated that the Programme is expected to support approximately 200 to 250 Korea Returnees with an average loan size of Rs 5 million, the press note reads, adding that the Programme will run from 2026 to 2028. "The interest subsidy will be provided for the period of 5 years."
Through this programme Korea Returnees will have full opportunity to employ their skills and establish successful enterprise that supports the local economy. In addition to this, local employment will be created, it adds.
In the event KOICA Country Director said that it is a shared commitment to empowering Nepali returnee migrants who have contributed their skills, labour 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," Kong said, on the occasion.
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," he said, adding, "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."
During the event, joint secretary Sharma said that KOICA has always been a meaningful partner. "Its cooperation has been meaningful and very much effective," he added.
ADBL CEO Gurung, on the occasion, said that the programme 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 programme successfully and look forward for such innovative programmes in future.