South Korea Pledges Continued Development Financing to Cambodia, Aims to Boost Investment and SME Cooperation

PHNOM PENH, Sept 2, 2026 (KPT) — South Korea will continue providing development financing to Cambodia as the two countries move to deepen investment and private‑sector cooperation, particularly to support Cambodia’s priorities and small and medium‑sized enterprises, officials said Tuesday. Deputy Prime Minister and Finance Minister Aun Pornmoniroth met South Korean Ambassador Kim Chang Yong on Aug 27 to discuss strengthening bilateral financial, development and economic ties. Pornmoniroth thanked Seoul for its long‑standing Official Development Assistance through the Korea International Cooperation Agency (KOICA) and the Economic Development Cooperation Fund (EDCF). South Korean concessional loans and grants have supported projects including roads, bridges, irrigation, electricity networks, hospitals and schools. Cambodia’s finance ministry said South Korea is its third‑largest bilateral development partner. Seoul has expanded its EDCF framework for Cambodia to $3 billion for 2022–2030, targeting logistics, climate response and ICT. Ambassador Kim said South Korea would continue providing financing based on Cambodia’s needs and highlighted progress in trade and investment. The talks come as Phnom Penh seeks to move beyond aid and attract more Korean private‑sector investment. In July, a delegation of 15 South Korean firms explored opportunities in automotive, electronics, textiles, finance, construction and food industries. Pornmoniroth said Cambodia would strengthen cooperation under the government’s Pentagonal Strategy–Phase I, improve the investment environment and support micro, small and medium‑sized enterprises. The two countries elevated ties to a Strategic Partnership in 2024, creating a broader framework for expanding economic and investment cooperation. Officials said the combination of continued Korean financing and greater private investment could boost infrastructure, productivity and business development while linking Cambodian SMEs to Korean companies and regional supply chains.