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KEY QUESTIONS the Big Six South Korea Donor Profile KEY QUESTIONS the big six Who are the main actors in South Korea's development cooperation? Ministry of Foreign Affairs and Ministry of Strategy minister (who chairs the CIDC), 14 cabinet members, the and Finance steer policy; KOICA and the Korea Ex- president of KOICA, the chair of the Korea Eximbank, imbank implement and seven experts. The president of South Korea leads the government and The CIDC was established in 2006 and has since adopted sets broad strategic guidelines for development coopera- major policies including the ‘Strategic Plan for Interna- tion. The president’s directions are honored by minis- tional Development Cooperation for 2016-2020’ and an- tries and agencies, including on ODA volumes and the- nual ODA implementation plans. The CIDC meets ap- matic priorities. Moon Jae-in (Democratic Party) has proximately three times a year. The Sub-Committee for been president of South Korea since 2017, following the Evaluation – composed of the directors-general of MOFA impeachment of the previous president, Park Geun-hye. and MOEF, executives from KOICA and Korea Eximbank, Moon appointed Lee Nak-yeon as prime minister shortly as well as nine representatives from academia and civil after his inauguration. Within the prime minister’s of- society – meets usually before each CIDC meeting. The fice, Young Hyun Jang is Director-General of the ODA Bu- sub-committee reviews the alignment of South Korea’s reau. ODA spending with the Sustainable Development Goals (SDGs) agenda and gives advice to CIDC. Under the overall policy and decision-making authority of the president, two ministries guide the definition of Bilateral ODA priorities are articulated by the govern- development policy: the Ministry of Foreign Affairs ment in the Strategic Plan for International Development (MOFA) and the Ministry of Economy and Finance Cooperation for 2016 to 2020. Programming of bilateral (MOEF, formerly the Ministry of Strategy and Finance). funding for priority countries is set through Country Partnership Strategies (CPS). CPSs cover periods of three • MOFA, currently headed by Kang Kyung-wha, sets to five years, to match recipient countries’ national plan- policies and priorities for bilateral grants and multilat- ning cycles; the strategies set out two to three priority eral ODA channeled through the UN and other multi- sectors. In its latest Peer Review, published in 2018, the lateral instruments, such as the Global Fund to Fight OECD found that CIDC involvement in priority setting AIDS, Tuberculosis, and Malaria (Global Fund). Bilat- has supported strengthened quality assurance and re- eral grants are implemented by the Korea Internation- sults management in South Korea’s development cooper- al Cooperation Agency (KOICA), which is supervised ation. Desk officers have a great deal of discretion over by the MOFA (see below). Within MOFA, a director-gen- priority sectors at the country level and are decided dur- eral (currently Hyun-joo Oh) is responsible for the de- ing the update of the CPS (every three to five years). velopment cooperation bureau. Based on a CPS, South Korean policy-makers develop • MOEF, currently led by Nam-ki Hong, sets policies for concrete project proposals for the following year. This ODA loans and manages contributions to multilateral process, occurring between July and September, is coor- development banks. It also supervises South Korea’s dinated by inter-agency committees led by MOFA and Economic Development Cooperation Fund (EDCF), MOEF, as well as the CIDC. Once proposals are developed, which finances bilateral loans, and the Export-Import the MOEF can still veto any grant or loan; this has hap- Bank of Korea (Korea Eximbank) that implements pened repeatedly in the past. them (see below). In addition, the MOEF sets the na- tional budget, and its Budget Office can also veto • KOICA is another key player in the implementation of MOFA grants and loans that do not meet project-ap- development policy in South Korea. KOICA was found- proval criteria. Within MOEF, a director-general (cur- ed in 1991 and is responsible for providing bilateral rently Jang Heo) is responsible for the development fi- grants and technical cooperation. Over the past 20 nance bureau. years, almost half of total ODA spending (46%) and three-quarters of all grants (75%) were provided by Major ODA-related policies are decided by the Committee KOICA through country offices in 28 partner coun- for International Development Cooperation (CIDC). The tries. KOICA elected its first female president, Mi- CIDC is composed of 25 members and includes the prime kyung Lee, in November 2017. 12 donortracker.org March 2019 An initiative by SEEK Development South Korea Donor Profile • EDCF was established in 1987, with the purpose of pro- ment. Within the National Assembly, the Foreign Affairs moting economic cooperation between South Korea and Unification Committee is responsible for develop- and partner countries through loans. The direction of ment cooperation and can change overall ODA spending EDCF operations and policy-making responsibilities amounts and specific allocations through its Sub-Com- rest with the MOEF. The Korea Export-Import Bank mittee on Budget. The Parliament also provides the legal (Eximbank) manages and implements EDCF loans. basis for South Korea’s ODA policies, for example by ap- The Eximbank was established in 1976 to support proving the Framework Act on International Develop- South Korea’s economic development through ment Cooperation in 2010. strengthened exports, imports, and overseas invest- ments projects. Its goals include the promotion of eco- Civil Society: South Korean civil society organizations nomic cooperation with developing countries, devel- (CSOs) are involved in policy-making, yet they have opment of South Korea’s strategic industries, and raised concerns in recent years that the government has unification with North Korea. only consulted them in ad-hoc and selective ways. None- theless, six CSO delegates are members of the CIDC. CSOs Parliament: The National Assembly of the Republic of play a minor role in implementing South Korea’s ODA. In Korea, the Parliament, can influence the direction of 2017, only 3% of South Korea’s bilateral ODA was chan- South Korea’s development policy and budget. The Na- neled through CSOs, an increase from 2% in 2016, but tional Assembly votes on, amends as necessary, and ulti- well below the average of member countries of the OECD’s mately approves the budget bill presented by the govern- Development Assistance Committee (DAC, 17%). 13 donortracker.org March 2019 An initiative by SEEK Development South Korea Donor Profile SOUTH KOREA'S DEVELOPMENT COOPERATION SYSTEM 14 donortracker.org March 2019 An initiative by SEEK Development.
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