Korea pledged to strengthen support for facilitating growth in Central and South American countries during this year’s Inter-American Development Bank board of governors meeting in Busan last week.

The Finance Ministry unveiled a plan to offer $1.1 billion in policy funds to help finance development projects in Latin America. During the biennial IDB conference, Korea also promised to expand its knowledge-sharing program with states in the region to help them better use its development experience.

As Seoul officials note, Latin America is a “natural partner” for Korean companies as the region with a population of more than 600 million and rich resources provides them new business opportunities.

Over the past years, Korea has intensified efforts to enhance economic ties with Latin America. In 2005, it became the second Asian country to join the 48-member IDB after Japan. Korea has concluded free trade agreements with Chile in 2004, Peru in 2011 and Colombia in 2013. Its direct investment in the region increased from $2.22 billion in 2010 to $3.49 billion last year.

It is all the more necessary for Korean companies to accelerate advancement into Central and South American markets as the country is struggling to find new momentum to boost its sluggish economy.

This effort, however, should be made against daunting competition from their rivals from China and Japan, both of which also see an increasing need to expand ties with Latin America. Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe traveled to the region last July, pledging more financial assistance and investment.

It may not be easy for Korea to catch up with the two neighboring giant economies in competing for Central and South American markets. However, it is also certain that the country has room for establishing itself as a valuable partner with Latin American states by sharing its development experiences and offering programs tailored to meet their specific needs.

The hosting of the IDB board of governors meeting and the selecting of Finance Minister Choi Kyung-hwan to serve as its rotating chairman for one year should help strengthen Korea’s foothold in the region. President Park Geun-hye also needs to visit the region in the near future to consolidate this momentum.