The South Korean government is set to overhaul the K-knowledge sharing project (KSP), which has been in operation for over 20 years, transforming it from a simple policy advisory initiative into a strategic economic cooperation platform that connects domestic companies with overseas expansion and investment opportunities. The aim is to ensure that policy advisory outcomes lead to actual projects and investments, thereby securing new growth engines in an era of economic security and supply chain restructuring.
On June 19, the Ministry of Economy and Finance approved the "KSP Innovation Plan" during the 270th External Economic Ministers' Meeting chaired by Deputy Prime Minister Koo Yun-cheol. This plan outlines the medium-term operational strategy for 2026-2028, designed to respond to rapidly changing external conditions and enhance the effectiveness of the initiative.
Launched in 2004, KSP has conducted a total of 761 policy advisory projects across 102 countries, establishing itself as a leading international development cooperation initiative for South Korea. However, there have been calls for a more strategic approach to project identification and subsequent investment connections in light of global supply chain changes, economic security enhancements, and advancements in artificial intelligence and digital transformation.
In response, the government will introduce tailored "strategic planning projects" focused on four key areas: supply chains, AI and digital technology, green initiatives, and culture. The proportion of strategic planning projects, currently at about 30%, is set to increase to over 60% by 2030, concentrating efforts on areas directly linked to national interests and economic security. Key tasks with high potential for investment project connections will be selected for major partner countries, with support provided in the form of institutional improvements and follow-up project planning.
To ensure that policy advice translates into actual investments and projects, the government plans to strengthen follow-up project connections. The current linkage rate with the Economic Development Cooperation Fund (EDCF) and multilateral development banks (MDBs), which is below 10%, is expected to rise to over 30% by 2030. To achieve this, a portion of KSP's bilateral projects will be utilized in the EDCF candidate project identification phase, and preferential measures will be established to connect with large-scale investment projects from MDBs.
Private sector participation will also be expanded. The government plans to establish industry roundtables for the four key areas, holding regular meetings at least once a year to incorporate feedback from the field into project identification and planning. The existing private sector solicitation system will be restructured to focus on the four strategic areas, enhancing the feasibility of commercialization.
Additionally, an AI-based integrated database will be established to systematically manage projects by country, and communication channels with overseas diplomatic missions will be strengthened to continuously monitor local policy changes and risk factors. The evaluation system will be refined to focus on the outcomes of follow-up project connections, contributions to partner country development, and the overseas expansion achievements of domestic companies and institutions. Procedures for information disclosure and feedback collection on major tasks will be institutionalized to enhance the transparency and fairness of the projects.
The government aims to cultivate KSP as a "lever" that organically connects strategic economic and policy cooperation with private investment, providing sustainable growth opportunities for partner countries while expanding the foundation for economic cooperation and generating new growth engines for South Korea.
* This article has been translated by AI.
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