Industrial ODA Management Shifts from KIAT to KOTRA After 14 Years... Stronger Support for Overseas Expansion of Korean Companies

Linking Market Entry and Supply Chain Cooperation in Emerging Markets
Policy Focus Shifts to "National Interest and Corporate Support"

The government will change the managing agency for the “industrial Official Development Assistance (ODA)” program—an initiative that links the industrial development of developing countries with overseas expansion of Korean companies—from the Korea Institute for Advancement of Technology (KIAT) to the Korea Trade-Investment Promotion Agency (KOTRA). The plan is to leverage KOTRA’s overseas trade office network to use the ODA program as a catalyst for Korean companies’ entry into emerging markets and for supply chain cooperation.

According to the Ministry of Trade, Industry and Energy on August 30, KIAT and KOTRA will sign a “handover agreement for the Industrial Trade Cooperation Development Support Project (industrial ODA)” on August 31. Starting September 1, KOTRA will take over full management of the industrial ODA program.

The industrial ODA program is a cooperative ODA initiative that supports the economic and industrial development of developing countries while simultaneously facilitating the local expansion of Korean companies. This year’s budget for the program is 31.2 billion won.

This is the first time in 14 years that the managing agency for industrial ODA has been changed since the program was launched in 2012. While KIAT has so far been responsible for management and implementation, establishing the system, going forward, KOTRA will leverage its overseas network to strengthen on-site business management and enhance support for companies entering foreign markets.

In particular, KOTRA’s overseas trade offices will serve as local outposts for the industrial ODA program. The focus will be on actively reflecting local industrial and market needs during project identification and management, and on connecting the ODA program to follow-up projects including exports and investment by Korean companies.

KOTRA will also strengthen connections between the industrial ODA program and other ODA programs it already participates in, such as the Knowledge Sharing Program (KSP) and Economic Innovation Partnership Program (EIPP). KSP and EIPP are advisory programs for the economic development policies of partner countries, with KOTRA serving as the lead agency together with institutions such as the Export-Import Bank of Korea.

The Ministry expects that by linking the industrial ODA program with existing initiatives, there will be synergy effects spanning from policy advisory for partner countries, to industrial cooperation, and finally to local expansion of Korean companies. In the case of projects targeting resource-rich countries, the program will also be used as a means to expand cooperation in core resource supply chains.

Bae Junhyung, Director-General for Trade Cooperation at the Ministry of Trade, Industry and Energy, stated, “Transferring the management of the program to KOTRA is not simply a change of agency, but a policy shift focusing strictly on national interest and support for Korean companies. We expect KOTRA to create a new model for ODA going forward.”

This content was produced with the assistance of AI translation services.