Canada Pushes for 'Global Defense Bank' Launch... Potential South Korean Participation

Canada plans to announce a list of approximately 10 countries that will join in the creation of a 'Global Defense Bank' at the NATO summit in Turkey next week, and South Korea could be among them, Reuters reported on July 2 (local time).

Isabelle Hudon, CEO of the Business Development Bank of Canada (BDC) and the lead negotiator for the multilateral initiative, stated, "Our goal is to have the list of founding members ready by the NATO summit."

Canadian Prime Minister Mark Carney has been pushing for the establishment of a 'Defence, Security and Resilience Bank' (DSRB) as part of a call for an alliance of middle powers to counter the erosion of the U.S.-led global order.

The primary purpose of the bank is to raise up to 100 billion pounds (approximately 205 trillion won) in low-interest funding to bolster the defense capabilities of allied nations.

Hudon noted that, excluding Canada, the initial list of founding members would mostly consist of European countries, though she declined to name specific nations.

However, Reuters projected that the project's future could remain uncertain if it fails to secure full support from key economies, which is essential for the bank to obtain a top credit rating.

Hudon added, "We have had productive conversations with South Korea, and there is a 50-50 chance of South Korea joining in the future," while noting that "there are no other Group of Seven (G7) countries on the verge of joining at this moment."

The South Korean Ministry of Economy and Finance stated that it is reviewing the proposal from the Canadian side, and Reuters reported that the Canadian Department of Finance did not immediately respond to a request for comment on the matter.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.