The IDB is in charge of managing the funds in accordance with an agreement between the organization and the donor country.

The Ministry of Strategy and Finance said South Korea has donated $50 million each to the poverty reduction fund and the public capacity building fund for the past decade. It also plans to pay $40 million to the knowledge fund.

Through the Korea-created funds, the IDB has carried out a number of development projects to help Central and South American countries, including one to finance Uruguay's cadastral mapping project.

"South Korea's participation in the IDB funds has spread its experience and know-how to Latin American countries," the ministry said in a release. "It also has helped South Korean companies make their presence in the continent."

For the past 10 years, South Korean companies have won a total of $1 billion from IDB-related procurement deals, accounting for 2.4 percent of the region's $42.9 billion market over the cited period. (Yonhap)