Overview

South Korea’s governance structure for its Official Development Assistance (ODA) is organized into a three-tier system comprising policy-making and coordinating institutions, supervisory institutions, and implementing agencies. This structured approach ensures efficient and targeted delivery of development aid.

1. Key Institutions

The main bodies involved in South Korea’s ODA are:

• Ministry of Foreign Affairs (MOFA): Oversees the Korea International Cooperation Agency (KOICA), which administers grant aid and development programs.
• Ministry of Economy and Finance (MOEF): Manages loans through the Economic Development Cooperation Fund (EDCF) administered by the Export-Import Bank of Korea.
• International Development Cooperation Committee (CIDC): Chaired by the Prime Minister, this committee coordinates ODA policies and strategies.

2. Budget and Distribution

For 2024, South Korea set its ODA budget at a record high of KRW 6.3 trillion (approximately USD 4.8 billion), marking a significant increase of 31.1% over the previous year. This expansion aligns with South Korea’s long-term goal of enhancing its global development contributions.

The ODA budget allocation includes significant portions for humanitarian assistance (17.5%), transportation infrastructure (15.1%), and healthcare (9%).

3. Regional Focus and Supported Countries

Historically, a large portion of South Korea’s bilateral ODA has focused on Asia, with significant aid also directed to Africa and Latin America. Key recipient countries have included Vietnam, Indonesia, and Iraq, with emerging focus on nations like Myanmar and the Philippines.

4. Representative Programs

• KOICA has been instrumental in implementing various developmental and grant-based programs, focusing on sectors like education, health, and public administration.
• EDCF loans support infrastructure development and economic development projects, enhancing recipient countries’ industrial bases and technological advancements.

South Korea’s ODA efforts are not only about providing financial assistance but also about sharing its development experience, particularly highlighting its journey from an aid recipient to a donor country. This transition underpins its development cooperation philosophy, emphasizing mutual growth and sustainable development.