2017/18 Knowledge Sharing Program with the Mekong River Commission: Basin-wide Strategy for Sustainable Hydropower Development 2017/18 Knowledge Sharing Program with the Mekong River Commission 2017/18 Knowledge Sharing Program with the Mekong River Commission Project Title Basin-wide Strategy for Sustainable Hydropower Development Prepared by Korea Development Institute (KDI) Supported by Ministry of Economy and Finance (MOEF), Republic of Korea Prepared for Mekong River Commission (MRC) In Cooperation with Mekong River Commission (MRC) Mekong River Commission Secretariat (MRCS) Thailand National Mekong Committee (TNMC) Lao National Mekong Committee (LNMC) Cambodia National Mekong Committee (CNMC) Vietnam National Mekong Committee (VNMC) Program Directors Youngsun Koh, Executive Director, Center for International Development (CID), KDI Kwangeon Sul, Visiting Professor, KDI School of Public Policy and Management, Former Executive Director, CID, KDI Project Manager Kyoung Doug Kwon, Director, Division of Policy Consultation, CID, KDI 3URMHFW2I¿FHUV Yerim Kim, Senior Research Associate, Division of Policy Consultation, CID, KDI Seungju Lee, Research Associate, Division of Policy Consultation, CID, KDI Senior Advisor Kyungsik Kim, Former Vice Minister for Ministry of Land, Infrastructure and Transport, Republic of Korea Principal Investigator Seungho Lee, Professor, Korea University Authors Chapter 1. Seungho Lee, Professor, Korea University Chapter 2. Ilpyo Hong, Senior Fellow, Korea Institute of Civil Engineering and Building Technology Chapter 3. Hyun Jung Park, Senior Fellow, Korea Research Institute for Environment and Development Dong Jin Choi, President, Korea Research Institute for Environment and Development Dararath Yem, Consultant, MRCS Chapter 4. Joo-Heon Lee, Professor, Joongbu University English Editor Korea Institute of Culture and Arts Translation Government Publications Registration Number 11-1051000-000820-01 ISBN 979-11-5932-304-1 94320 ISBN 979-11-5932-302-7 (set) Copyright ⵑ 2018 by Ministry of Economy and Finance, Republic of Korea (PWFSONFOU1VCMJDBUJPOT 3FHJTUSBUJPO/VNCFS 2017/18 Knowledge Sharing Program with the Mekong River Commission: Basin-wide Strategy for Sustainable Hydropower Development Preface Knowledge is a vital ingredient that determines a nation’s economic growth and social development. Its true value was brought to light by the advent of the knowledge economy and a key question policymakers now face, especially in developing countries, is how an environment can be established that encourages and facilitates the creation and dissemination of knowledge across the nation. This need has led many countries to engage themselves in active policy dialogue to share their development experiences and benefit from mutual learning. Korea’s development has also depended heavily on knowledge. Its remarkable transition from a predominantly agrarian economy to an industrialized country was made possible by its well- rounded and extensive understanding of technology, management, public policy, and other diverse issues acquired from domestic and foreign sources and through trial and error. Building on these rich experiences, the Korean Ministry of Economy and Finance (MOEF) launched the Knowledge Sharing Program (KSP) in 2004 to assist partner countries to improve their policymaking. KSP, as implemented by Korea Development Institute (KDI), focuses on providing solutions customized to each country’s economic, social and administrative settings, building capacity for effective policymaking and strengthening global networks for development cooperation. In 2017/18, KSP policy consultations were organized with 31 partner countries, with Mekong River Commission joining the partnership for the first time. The 2017/18 KSP with the Mekong River Commission was undertaken by the MOSF and the Mekong River Commission (MRC) with the aim of “Basin-wide Strategy for Sustainable Hydropower Development.” To that end, the KDI research team and the MRC counterpart made a range of collaborative efforts by exchanging development experiences, conducting joint studies and designing a policy action plan in line with the country’s development targets. With that, it is with great optimism for the future of MRC that the results of the 2017/18 KSP are presented. I firmly believe that KSP will serve as a stepping stone to further elevate the mutual learning and economic cooperation between the two countries and hope it will contribute to MRC’s sustainable development in the future. I wish to convey my sincere gratitude to Senior Advisor Kyungsik Kim, Principal Investigator Prof. Seungho Lee as well as project consultants Dr. Ilpyo Hong, Dr. Hyun Jung Park, Dr. Dong Jin Choi and Prof. Jooheon Lee for their extensive contributions to the successful completion of the 2017/18 KSP with MRC. I am also grateful to Executive Director Dr. Youngsun Koh, Project Manager Dr. Kyoung Doug Kwon, Project Officers Ms. Yerim Kim and Ms. Seungju Lee and all members of the Center for International Development for their hard work and dedication. Lastly, I extend my warmest thanks to the MRC, Mekong River Commission Secretariat (MRCS), Thailand National Mekong Committee (TNMC), Lao National Mekong Committee (LNMC), Cambodia National Mekong Committee (CNMC), Vietnam National Mekong Committee (VNMC) and related MRC agencies for their active cooperation and great support. Jeong Pyo Choi President Korea Development Institute (KDI) Contents 2017/18 KSP with the Mekong River Commission ..................................................................... 016 Executive Summary.............................................................................................................. 020 Chapter 1 Water Security and Integrated River Basin Management Summary............................................................................................................................ 024 1. Introduction.............................................................................................................. 027 1.1. Definitions and Objectives of Water Security in the Korean Context ............................. 027 1.2. Major Principles and Case Studies ........................................................................... 032 2. Integrated River Basin Management in Korea ................................................................ 039 2.1. Overview of Integrated River Basin Management in Korea ......................................... 039 2.2. Development of River Basin Management from the 1960s to the Present ...................... 046 2.3. Case Studies........................................................................................................ 056 3. Review of Strategies for Water Security and Sustainable River Basin Management in the Mekong River Basin .......................................................................................... 069 3.1. Definitions and Objectives of Water Security in the Mekong River Basin ....................... 069 3.2. Major Principles and Case Studies ........................................................................... 072 3.3. Development of River Basin Management ............................................................... 073 3.4. Overview of Integrated River Basin Management in the Mekong River Basin ................. 077 3.5. Case Studies........................................................................................................ 079 4. Implications and Recommendations ............................................................................. 081 4.1. Implications ........................................................................................................ 081 4.2. Recommendations ............................................................................................... 084 References ......................................................................................................................... 088 Chapter 2 ChallengesChapter 2 and Opportunities in Sustainable Hydropower Development Summary............................................................................................................................ 094 1. Introduction ............................................................................................................. 097 2. Dam Development and Water Resources Management in Korea ....................................... 100 2.1. Colonial Period.................................................................................................... 100 2.2. Restoration Period after Liberation (1945~1950s) ...................................................... 101 2.3. Era of Comprehensive Water Resources Development (1960s) ..................................... 102 2.4. Renaissance of Water Resources Development (1970~90s) .......................................... 106 2.5. Paradigm Shift in Water Management Policy............................................................ 120 3. Mekong Water-Energy Security Nexus: Opportunities and Challenges ............................... 122 3.1. Mekong River Basin ............................................................................................. 122 3.2. State of the Water-Energy Security Nexus in Mekong River Basin ................................ 124 3.3. Hydropower Development and Challenges for Water and Food Security in the Mekong Basin ................................................................................................ 135 3.4. Recommendations ..............................................................................................