Finance ministry says IDB Invest backs Posco Argentina lithium project

The finance ministry said Friday that IDB Invest, the private sector investment arm of the Inter-American Development Bank Group, will support Posco Holdings' lithium mining and production project in Argentina with a $700 million loan. The funding aims to help the Korean company secure stable operating capital while reducing financial costs through low-interest rates and tax benefits.

The deal marks a concrete outcome of last month's presidential tour of South America. It also reflects accumulated cooperation foundations built through the government's sustained support for Korean personnel advancing into international financial organizations.

Mo Ji-sung, director general for international economic management at the ministry, met with James Scriven, CEO of IDB Invest, on Thursday afternoon to discuss expanding Korean business presence in Latin America. During the meeting, officials noted that the loan serves as a representative case of supporting domestic enterprises, with the ministry also backing the project through feasibility review procedures funded by the Korea Trust Fund.

"Cooperation with IDB and IDB Invest has been helpful in the process of our companies entering the Latin American market," Mo said. He emphasized the need to expand mutually beneficial opportunities by linking Latin America's abundant critical mineral resources with Korea's technology and financial capabilities amid growing uncertainty in global supply chains.

Scriven expressed gratitude for the Korean government's participation in IDB Invest's third general capital increase. He affirmed his commitment to continuing collaboration with Korean companies based on this partnership.

The government plans to strengthen support programs for enterprises through trust fund projects and the Korea-Latin America Business Forum, while continuing to expand the foundation for Korean companies and talent to advance into Latin America through cooperation with IDB.