Korea’s Relevant Experience

• The Seoul Metropolitan Government has established the 6th “Smart City and Digitalization Basic Plan (2021-2025)” to set a global standard for smart cities and allocated more than 1,200 dedicated persons and an annual budget of over KRW 400 billion (as of 2022).
  • Promoting “Smart Seoul Platform (6S)”:
    • Hyper-connected city (Smart Seoul Network, or S-Net)
    • Datafication of urban phenomena and citizens’ behaviors (Smart Seoul Data of Things, S-Dot)
    • AI-based customized service (Smart Seoul Brain, or S-Brain)
    • Storage and increased utilization of urban data (Smart Seoul Data, or S-Data)
    • 3D virtual city (Smart Seoul Map, or S-Map)
    • Cutting-edge technology-based safe city (Smart Seoul Security, or S-Security)

Background

• Lima Metropolitan City is the hub of politics, economy, and industry in Peru and home to 30 percent of Peru's population (about 9.5 million). However, increasing crime rates, environmental pollution, traffic congestion, among other issues are worsening while a key pillar of the economy, the tourism industry, is in recession amid the COVID-19 pandemic.
• The Municipality of Lima signed an MOU on cooperation for smart city development in Lima with the Seoul Metropolitan Government in November 2021. Following up on the cooperation, a KSP project to establish a smart city was requested.

Consultation Topics

• Korea’s experience through a comparative analysis of advanced smart city model cases
• A smart city master plan and a roadmap tailored to the conditions of Lima Metropolitan City

Tentative Outcomes

Follow-up Cooperation

• Pursuing a follow-up project “Smart City Management Strategies for Lima’s Historic Downtown” through the 2023/24 KSP-IDB joint consulting.
• Linking to a World Bank (WB) follow-up project (USD 500,000, supporting preparation research for main project to establish an ITS in Lima) and preparing for EDCF-WB joint loan approval in 2023.

Korea’s Relevant Experience

• Korea’s dBrain (digital budget and accounting system) enables effective financial management by conducting all fiscal processes online and linking and analyzing national fiscal information.
  • Launching of dBrain (2007) → Winning first place at the United Nations Public Service Awards (2013) → Launching of next-generation digital budget and accounting system, dBrain+ (2022)

Background

• The Indonesian government has been simultaneously running several similar financial management programs, adding to administrative inefficiency.
• The Indonesian MoF requested building a more effective and flexible next-generation SPAN (state budget and treasury system). The project was conducted as a follow-up to the KSP projects in 2011 and 2013 which were undertaken prior to the introduction of SPAN in 2015.

Consultation Topics

• Strategies to integrate SPAN (Indonesian state budget and treasury system) with SAKTI (Indonesian institution-level financial application system) and to interconnect the systems with other Indonesian government systems
• Transition from commercial off-the-shelf (COTS) packages to locally developed software (LDSW) solutions for Integrated Financial Management Information System (IFMIS)
• Utilization of advanced technology in data system for Indonesia’s IFMIS

Tentative Outcomes

Follow-up Cooperation

• Applying for 2024/25 KSP fast-track project (“Development of Indonesia’s Next-Generation Integrated Financial Management System”).
• Linking with EDCF for establishing Indonesia’s Next-Generation SPAN (KRW 80 billion requested for a demonstration module for integrated system).

Korea’s Relevant Experience

• With an aim to secure funds for infrastructure investment, Korea enacted “the Act on public-private partnership (PPP)” in Infrastructure in 1994, and since then, about 800 PPP projects have been conducted with continuous legislative amendments.
  • The Seoul Metropolitan Government has conducted the urban railway project in three stages since 1971. However, due to the worsening financial situation caused by the 1997 Asian financial crisis that occurred during the project, the last stage* was constructed through the Build-Transfer-Operate (BTO)** method

Background

• As Ha Noi suffers from chronic traffic congestion, Vietnam has promoted the construction of metropolitan railway lines. The investment, however, has only been made in partial lines, hindering the city-wide railway development.
• The Ha Noi Metropolitan Railway Management Board (MRB) requested for a KSP project for the purpose of building strategies to utilize PPP for the seamless implementation of the Ha Noi Urban Metro Project.

Consultation Topics

• Ha Noi’s urban metro development status
• Korea’s experience in metropolitan railway projects and public-private partnership (PPP) cases
• Strategies for project implementation

Tentative Outcomes

Promoting PPP to policy practitioners and strengthening capacities

• Raising awareness of importance of PPP among high-ranking officials of Ha Noi People's Committee, who are key decision-makers of policy PPP projects.

Korea’s Relevant Experience

• During the industrialization period, Korea pursued the 5-year economic development plan along with trade promotion policies by providing support in terms of trade related laws, regulations, and taxation, creating industrial complex, and supporting overseas sales and marketing.
  • “Support for Small and Medium Enterprises Establishment Act” (1986) → Improved startup support systems and expanded support with newly established Ministry of Small and Medium Business Administration* and KOSDAQ (1990s) → “Super Gap Startup 1000+ Project” investing KRW 2 trillion over five years (2023-2027)

    The former body of the Ministry of SMEs and Startups

Background

• The economy of Laos is heavily dependent on foreign investment in natural resources and overseas aid while the manufacturing sector remains weak. With most consumer goods imported, there is a chronic current account deficit.
• To address the issue, the Lao government has been making efforts, as demonstrated by the 9th Five-Year National Socio-Economic Development Plan, to increase the number of SMEs by 2 percent annually, raise the GDP contribution of SMEs to 18 percent, attract more foreign investment, and diversify industry sectors.
• The Ministry of Industry and Commerce requested a KSP project with a goal to seek strategies to nurture startups and new/existing exporters for sustainable economic development and the discovery of new growth engines.

Consultation Topics

• Fostering new exporters and startups
• A startup support system
• An integrated support system (One-stop Service) of relevant ministries
• Improvement of startups’ business environment

Tentative Outcomes

Follow-up Cooperation

• Discussion of potential follow-up projects at the Laos Export Promotion Workshop (November 21 – 22, 2022, Luang Prabang) and the MOIC in preparation to apply for a project on establishing an export and startup incubation platform in conjunction with KOICA ODA, to implement the KSP policy recommendations.

Encouraging Private Sector Cooperation

• Linkage with private businesses: A Korean-Laotian company meeting (June 3, 2022, Seoul)
• Greengoods Inc., a company operating in Laos, donated facilities for effective microorganism fermentation to the Paksubmai Poultry Cooperative for mass production of poultry and conducted capacity-building training for members of the Cooperative (August 15 – 16, 2022, Vientiane).

Korea’s Relevant Experience

• Korea has implemented various policies to increase the competitiveness of its automotive industry over the past 6 decades.
  • (1960s-70s) Fostered export-oriented sector with low production costs, own models, and self- manufacturing of parts
  • (1990s-2000s) Cultivated highly skilled talents and support R&D capabilities
  • (Present) Supporting the expansion of industry boundaries to future vehicles and new mobility industries

Background

• While the Paraguayan government has implemented policies to promote the industry since 1998, the lack of a mid- to long-term strategy and policy has posed challenges for industry growth.
• Paraguay’s Ministry of Industry and Commerce (MIC) requested for KSP assistance in identifying key competitive areas in the automotive parts manufacturing and developing a long-term strategy, with the goal of becoming a hub for the automotive industry in South America.

Consultation Topics

• Key competitive areas in the automotive industry
• Improving laws and regulations to attract investment in Paraguay’s related industries
• The role of the industry using trade agreements

Tentative Outcomes

Enhancing Policy Networking

• Paraguay’s MIC in review of organizing a public-private taskforce for a national automotive industry plan in accordance with KSP consultations

Follow-up Cooperation

• Cooperation continued following the MOU signing, as shown in the “Korea-MERCOSUR International Seminar on Future Automotive Industry (May 17, 2022, in Asunción),” jointly hosted by the KOTRA and the MIC, with Hyundai Economic Research Institute participating as a speaker.

Korea’s Relevant Experience

• Since the 1970s, Korea has implemented various policies and initiatives to stabilize the property market, including large-scale urban development, macroprudential and housing tax policies, and an early warning system for real estate.

Background

• Cambodia’s 7 percent annual economy growth has increased the national income and the middle class while invigorating the property market. However, the market relies heavily on foreign capital and slowed down amid the pandemic, beginning to post risks to macroeconomic stability.
• The Ministry of Economy and Finance of Cambodia requested for a KSP project to build policies for monitoring property market risks in order to minimize potential risks caused by the downturn.

Consultation Topics

• Analysis on volatility in Cambodian property market and macroeconomic stability
• Early warning system for property market
• Macroeconomic stabilization and tax policies in real estate markets of Korea and Cambodia
• Managing property risks with large-scale urban development

Tentative Outcomes

Reflected in partner country’s policy

• Enhancing Policy Networking: A high-level consultation body formed between the MEF and REBPR of Cambodia to build a basis statistics system

Follow-up Cooperation

• A capacity-building workshop held in Korea for seven REBPR members (September 19 – 23, 2022) to support building an early warning system, as recommended by the KSP