InterviewIDB Group to set up AI hub in Seoul to bring Korean technologies to Latin America

Inter-American Development Bank Group President Ilan Goldfajn speaks during an interview with The Korea Times at Conrad Seoul, Monday. Korea Times photo by Choi Won-suk

An upcoming artificial intelligence (AI) hub in Korea, to be established by the Inter-American Development Bank Group (IDB Group), will connect Korea's technological expertise with Latin America's development needs, creating a platform for collaboration, innovation and talent exchange, according to IDB Group President Ilan Goldfajn.

Marking 20 years of partnership, the IDB Group and Korea's Ministry of Economy and Finance announced the launch of a new Korea-IDB Group cooperation package. According to the signed letter of intent, a Korea-IDB Group AI hub will be established in Korea.

"We are thinking about the future 20 years," Goldfajn said in an exclusive interview with The Korea Times on the sidelines of the seventh Korea-LAC Business Summit in Seoul Monday.

"Having a hub here will increase our presence — and not just any hub, but an AI hub — because it allows us to use Korea's technological expertise with what Latin America needs," Goldfajn added. "And it will create a space where we can bring in talent from Korea."

The IDB Group provides financial and technical support to national and subnational governments and other entities in Latin America and the Caribbean. It comprises 48 member countries, with Korea holding a 0.004 percent stake. Korea joined in 2005 as its 47th member and has mobilized over $2.5 billion to date.

Goldfajn's weeklong visit to Korea underscored the country's growing role as a key partner in advancing the IDB Group's mission.

Inter-American Development Bank Group President Ilan Goldfajn, left, speaks with Prime Minister Kim Min-seok at Government Complex Seoul, Monday. Courtesy of Prime Minister's Office

As the first of its kind within the group, the AI hub will support the organization's aim to boost AI integration across Latin America, including in agribusiness, energy supply, and food production. Korean companies can also use the strategic platform to expand their presence in the region.

While the opening date has yet to be confirmed, Goldfajn said the group aims to move forward with the establishment as soon as possible. The initiative will be backed by an expanded "Korean Fund," with $20 million in new grant resources to support technology and innovation.

"We (IDB Group and Korea) have matured. We have already 20 years where we had an impact of 4 million households with more than $2 billion of trust funds in countries like El Salvador, Guatemala and others," Goldfajn said.

The newly announced cooperation package also includes a Korean guarantee to unlock IDB lending, a $300 million co-financing facility with the Export-Import Bank of Korea, and expanded career opportunities for Korean professionals.

In his meeting with Goldfajn on Monday, Prime Minister Kim Min-seok also expressed hope that "the AI hub, launched on the occasion of the IDB president's visit to Korea, will serve as a solid foundation for expanding our collaboration beyond traditional sectors to include AI, digital and energy."

Looking ahead, the IDB Group has identified five key priorities for the partnership: AI and digital transformation, energy, critical minerals, infrastructure and talent mobility.

Inter-American Development Bank Group (IDB Group) President Ilan Goldfajn, left, shakes hands with Minister of Economy and Finance Koo Yun-cheol at the Conrad Seoul, Monday, during the signing ceremony for the Korea-IDB partnership package. Courtesy of IDB Group

"Beyond the numbers, this partnership is also about people. Korea has given the world K-pop, K-drama, and now, we hope, K-talent," Goldfajn said. "Today, 42 Korean professionals are working across the IDB Group, and 62 alumni are now back in Korea — nearly half at the Ministry of Economy and Finance. It's an important community and one we want to continue to build."

Following its partnership with Yonsei University in September, the IDB Group signed a global internship agreement with Korea University on Friday and hosted a recruitment information session at Conrad Seoul on Monday.

Goldfajn noted it was the first time the IDB Group brought its full human resources operation outside Latin America. More than 35 interviews were conducted at Monday's session, with the goal of filling 15 positions.

Korea and Latin America's growing synergy

Though few regions may seem farther apart than Korea and Latin America, they share complementary strengths that position them as natural global partners, Goldfajn said.

Latin America holds two-thirds of global lithium reserves and vast copper deposits, along with other critical minerals that Korea requires for its energy transition and technological development. It is also one of the world's major food producers — with Korea sourcing about 17 percent of its agri-food imports from the region.

In return, Korea offers advanced technology, finance, and innovation. Its leadership in AI, 5G, fintech and smart cities aligns with Latin America's goals of building digital economies and resilient infrastructure.

As a result, trade between the two regions has surged from $13 billion in 2005 to a projected $70 billion this year. Korean firms such as Kia, Hyundai Motor, Samsung and LG manufacture in Mexico and Brazil, with POSCO investing $4 billion in Argentina’s lithium sector. Latin American companies, like KidZania, are also operating in Seoul.

Participants listen to a speech by Inter-American Development Bank Group (IDB Group) President Ilan Goldfajn during the seventh Korea-LAC Business Summit at Conrad Seoul, Monday. Courtesy of IDB Group

Goldfajn emphasized that Korea's development journey — escaping the middle-income trap through innovation and strong institutions — offers valuable lessons for the region.

"Korea's story offers powerful lessons for Latin America and the Caribbean. It shows that escaping the middle-income trap is possible — through long-term investment, strong institutions and a relentless focus on human capital," Goldfajn said.

"What the world calls the Miracle on the Han River was not a miracle — it was the product of clear priorities, long-term investment in people and deep collaboration between the public and private sectors," he added. "That's why Korea is more than a partner. It's an example of what's possible, and a reminder that with the right policies, ambition, and collaboration sustained transformation."

Goldfajn was elected president of the IDB on Nov. 20, 2022. He served as director of the Western Hemisphere Department at the International Monetary Fund in 2022, after serving as governor of Brazil’s central bank from 2016 to 2019. Under his leadership, total IDB Group financing is expected to rise from $25 billion in 2024 to $38 billion by 2030, with half coming from IDB Invest, its private-sector investment arm.