KOICA, ADBL launch $8m finance programme to help returnees from Korea set up businesses
KATHMANDU: Korea International Cooperation Agency (KOICA) and Nepal’s Agricultural Development Bank (ADBL) have launched a financial support programme to help migrant workers returning from the Republic of Korea reintegrate through entrepreneurship.
The partnership, signed in the presence of the Ministry of Labour, Employment and Social Security (MoLESS), will be implemented under the project “Strengthening Stage‑Wise Support System for the Stable Reintegration of Korea Returnee Migrants in Nepal,” KOICA said in a press release.
The programme will expand access to finance for eligible beneficiaries who are returnee migrants from Korea and who have taken part in the K‑HaMi Project and completed entrepreneurship training through 2028. It is structured to provide sustainable, long‑term support for business startups and expansion.
Of the total $8 million project budget, KOICA will provide $2.5 million to be used exclusively for interest subsidies on loans to eligible returnees. ADBL will allocate about Rs 1.2 billion (nearly $8 million) as loan capital for the same group. The average loan size is projected at Rs 5 million, with an estimated 200 to 250 beneficiaries to be supported depending on individual loan amounts and overall fund utilisation.
KOICA and ADBL said the partnership aims to remove financial barriers to entrepreneurship for returnees and to channel the skills and experience they gained in Korea into local economic growth. By improving access to capital, the programme intends to turn returnees into job creators and support sustainable economic reintegration.
KOICA Country Director Mooheon Kong said the programme targets returnee migrants who have shown commitment to reintegration by participating in the K‑HaMi Project and completing entrepreneurship training, ensuring that financing is paired with business skills for long‑term success.
Joint Secretary of MoLESS Krishna Sapkota called the K‑HaMi Project a success in reintegration, skill development and financial literacy, and said the access to finance component will be the most impactful part of the initiative. He added he expects similar projects from other donors.
Deputy General Manager at ADBL Sudip Dahal said the bank is fully committed to implementing the programme and is keen to support enterprise development and youth employment creation.
KOICA, MoLESS and ADBL said the collaboration marks a milestone in relations between South Korea and Nepal, moving beyond labour migration towards a model of sustainable economic reintegration. KOICA reiterated its long‑term commitment to Nepal, noting more than three decades of development cooperation and cumulative assistance exceeding $200 million by 2025.
(With inputss from RSS)
