- South Korea committed $11.8 million in grants to Nepal for agricultural development and a digital legal information system.
- A $10 million project will support smallholder farmers in Lumbini Province by improving productivity and market-oriented value chains.
- A $1.8 million initiative will create a digital platform to centralize and improve public access to Nepal's legal information.
- These agreements reflect a 30-year partnership focusing on technology transfer, institutional strengthening, and sustainable economic growth.
Kathmandu, Nepal: Reinforcing a development partnership that has spanned more than three decades, the Government of the Republic of Korea has committed USD 11.8 million in grant assistance to Nepal for two major projects aimed at improving farmers' livelihoods and expanding public access to legal information.
The agreements, signed in Kathmandu on Friday, reflect South Korea's continued investment in Nepal's long-term development at a time when the country is striving to modernise public services and strengthen its agricultural economy.
The Memorandums of Understanding (MoUs) were signed by Taeyoung Park, Ambassador of the Republic of Korea to Nepal, and Ghanshyam Upadhyaya, Secretary at Nepal's Ministry of Finance, on behalf of their respective governments.
According to the Embassy of the Republic of Korea, the grants will finance two initiatives to be implemented by the Korea International Cooperation Agency (KOICA) in partnership with relevant government agencies in Nepal.
The larger of the two projects—the Value Chain Development for Fruits and Vegetables Project (Phase II)—will receive USD 10 million in grant assistance between 2025 and 2031. The programme is designed to help thousands of smallholder farmers in six districts of Lumbini Province improve productivity, reduce post-harvest losses, and secure better prices for their produce.
Rather than focusing solely on increasing production, the project seeks to strengthen the entire agricultural value chain. Farmers will receive support to adopt market-oriented farming practices, improve post-harvest handling, and establish stronger market linkages. Officials believe these measures will lead to higher and more sustainable incomes for farming households in Banke, Dang, Kapilvastu, Rupandehi, Palpa, and Gulmi.
The project will be jointly implemented by KOICA, Nepal's Ministry of Agriculture, provincial authorities, and agricultural development agencies.
The second agreement allocates USD 1.8 million in grant assistance to establish the Nepal Law Information Pilot System, an initiative designed to make Nepal's legal information more accessible through a centralised digital platform.
Once completed, the system will enable citizens, legal professionals, researchers, and government institutions to access legislative records more easily, reducing reliance on scattered and often difficult-to-obtain legal documents. The project will also strengthen Nepal's digital legal infrastructure by developing a comprehensive database, improving institutional processes, installing essential IT infrastructure, and training government officials to manage the platform independently.
Speaking at the signing ceremony, Finance Secretary Ghanshyam Upadhyaya described South Korea as one of Nepal's most reliable development partners, saying that Korean assistance has consistently aligned with Nepal's development priorities and has delivered meaningful results across multiple sectors.
Ambassador Taeyoung Park said the projects represent more than financial assistance, emphasising that they also involve the transfer of knowledge, technology, and practical expertise. Through KOICA, he said, experienced Korean specialists will work closely with their Nepali counterparts to ensure that the projects deliver lasting benefits.
He added that the Government of the Republic of Korea has long promoted capacity-building by providing training opportunities for both senior policymakers and technical professionals, helping partner countries strengthen their institutions rather than relying solely on external assistance.
Ambassador Park also expressed confidence that the longstanding friendship between Nepal and South Korea would continue to deepen under Nepal's new leadership, with bilateral development cooperation expanding into new areas in the years ahead.
KOICA Country Director Mr Kong said the second phase of the agriculture project builds on the achievements of the first phase in Lumbini Province and is expected to contribute significantly to sustainable income growth for smallholder farmers. He added that the Nepal Law Information Pilot System would improve public access to legal information, enhance transparency, and strengthen the institutional foundation for digital legal services in Nepal.
South Korea has remained one of Nepal's most trusted development partners since 1991, when KOICA began its operations in the country. Over the past three decades, the agency has provided approximately USD 235 million in development assistance, supporting projects in health, education, agriculture, vocational training, rural development, and digital transformation.
The partnership has also expanded beyond development assistance. South Korea has become an important destination for Nepali workers, a growing source of foreign direct investment, and a valuable partner in technology transfer and institutional development. In recent years, Korean support has increasingly focused on modernising agriculture, strengthening food security, enhancing agricultural value chains, and promoting digital governance.
The latest grant agreements underscore the evolving relationship between the two countries—one that is no longer centred solely on financial assistance but increasingly on sharing expertise, strengthening institutions, and creating sustainable opportunities that can improve the lives of ordinary Nepalis for years to come.
