The management of Industrial Official Development Assistance (ODA) will transition from the Korea Institute for Advancement of Technology (KIAT) to the Korea Trade-Investment Promotion Agency (KOTRA). This change aims to leverage KOTRA's overseas network to support developing countries while facilitating domestic companies' entry into emerging markets.
On August 30, the Ministry of Trade, Industry and Energy announced that KOTRA will take over project management starting September 1, following a 'handover agreement' with KIAT. Industrial ODA is a mutually beneficial initiative that supports the industrial and economic development of developing countries while expanding opportunities for domestic companies. The budget for this year is set at 31.2 billion won.
KIAT has managed the Industrial ODA since its establishment in 2012, overseeing it for 14 years. However, due to recent changes in the policy environment, including the restructuring of global supply chains, the ministry decided to shift management to KOTRA to enhance field-oriented project management and corporate support.
KOTRA operates 132 overseas trade offices in 86 countries, which will serve as operational bases for the projects. The ministry plans to utilize these local offices to assess the needs of partner countries and the potential for domestic companies' market entry from the project planning stage.
Additionally, KOTRA will integrate its existing Economic Development Experience Sharing Program (KSP) and Economic Innovation Partnership Program (EIPP) with Industrial ODA to establish a support system that leads to project discovery, policy consulting, and corporate market entry.
Since 2012, the ministry has supported 103 Industrial ODA projects in 35 developing countries, totaling 593.1 billion won. Notably, through Industrial ODA projects, approximately 228 billion won worth of domestic equipment exports have been achieved, along with about 233 billion won in subsequent export results from the operation of local centers established through these projects.
This year, the Industrial ODA budget accounts for about 0.57% of South Korea's total ODA, indicating a limited scale. However, the connection between ODA projects and market research, buyer discovery, and investment support through KOTRA's overseas trade offices is expected to enhance effectiveness.
Baek Jun-hyung, Director of the Trade Cooperation Bureau at the Ministry of Trade, Industry and Energy, stated, 'The transfer of management to KOTRA is not merely a change of management agency but signifies a thorough shift in policy focus towards national interests and corporate support. We expect KOTRA to develop a new model for ODA.'
* This article has been translated by AI.
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