Relevant Korean Experience

With approximately 22,000 Innobiz certifications over the past two decades, Korea has contributed to the development of technology-based/technology-innovating SMEs, accounting for 20% of GDP. It has achieved policy results through efforts to improve the manufacturing-centered industry structure and bolster national competitiveness by fostering robust SMEs.

Consultation Topics

• Designing a Certificate System to Support Innovative SMEs: Focus on Food & Beverages
• Designing a Certificate System to Support Innovative SMEs: With a Focus on Dairy
• Operation Plan for the Technologically Innovative SMEs Certification System

Background

• In an effort to foster critical national industries, the Indonesian government has emphasized advancements in innovation and technology, the transition to a digital economy, and improvements in small business capabilities.
  • In addition to its National Industry Development Master Plan (RIPIN) - 2015–2035, it announced the Making Indonesia 4.0 initiative in 2018.
• The Indonesian Ministry of Cooperatives and SMEs utilized a 2019/20 KSP policy consultation effort to benchmark Korea's technologically innovative SME certification system (Innobiz) for the fostering of its own outstanding SMEs with technological capabilities. This included an assessment of the certification system's feasibility and suitability (Phase 1) and the establishment of certification indicators for manufacturing (part of Phase 2).
  • The ministry requested a 2022/23 KSP in order to finalize the development of a certification system through follow-up efforts for Phases 2 and 3.

Objectives and Consultation Details

• Leveraging Korea's experiences in establishing the Innobiz certification system to create a culture for the systematic identification and fostering of technologically innovative SMEs, particularly in key manufacturing sectors such as automobiles and food/beverages, which are integral to Indonesia's industry roadmap from an intermediate- to long-term perspective.
• The project aimed to develop an intermediate- to long-term operational roadmap for the development of Innobiz certification indicators and implementing an Innobiz certification system in a non-manufacturing area (i.e., the dairy industry).
  • H.E. Teten Masduki, Minister of Small and Medium EnterprisesSMEs and Cooperation of Indonesia, H.E. Siti Azizah, Deputy Minister, etc. and other stakeholders directly participated in the business program stages such as Policy Practitioners' Workshoph as the visit to Korea for training, and discussions on the MOU for cooperation between Korea- and Indonesia small and medium enterprises and startups cooperation were held through the meeting between the ministers of SMEs and startups small and medium enterprises of both countries (May 25, 2023)., successfully completing the project.

Implications

• This project offered a suitable roadmap for introducing and operating assessment indicators tailored to the current conditions of SMEs in Indonesia, including the state of its food/beverage and dairy industries.
• The KSP contributed to establishing a friendly cooperative relationship in conjunction with the 50th anniversary of Korea-Indonesia relations.

Expected Outcomes and Results

• Signing of the INNOBIZ Association-Indonesian Ministry of Cooperatives and SMEs MOU for the Promotion of Technology Exchange for Technology Innovation SMEs (May 24, 2023)
  • Link with the project 'Smart Factory Introduction and Specialized Workforce Training Project for Indonesia's Industry Transition' (Korean Ministry of SMEs and Startups/Indonesian Ministry of Cooperatives and SMEs, 2023–26, KRW 7 billion)
• (Tentative) Review for SMESCO Indonesia as an Innobiz certification system management institution

Relevant Korean Experience

• In addition to the typical 'empirical special provisions' approach, Korea's regulatory sandbox system includes ad hoc permissions that allow immediate market entry to promote business convenience, as well as a 'prompt confirmation' system, where presiding agencies quickly confirm and notify companies of the existence or absence of regulations.
• Regulatory sandboxes are currently applied in areas of the real economy that include finance, ICT, and various industries.

Consultation Topics

• Assessment of Current Status of Regulatory Sandbox in Uzbekistan
• Establishment of Priority Tasks through Analysis of Fintech Industry and Regulation in Uzbekistan
• Recommendations on the Regulatory Sandbox Operation and Management

Background

• Amid its efforts to diversify fintech services from their previous focus on payment services, the Uzbekistan government has sought to improve the necessary regulations for fostering its financial industry.
• The Ministry of Finance of Uzbekistan requested the KSP in designing a regulatory sandbox framework and developing an implementation strategy, with the aim of leveraging Korea's experience in introducing its own financial regulatory sandbox to achieve institutional improvements tailored to Uzbekistan's specific situation.

Objectives and Consultation Details

• The objectives included the introduction and implementation of a regulatory sandbox system, the enhancement of relevant regulations in pilot project areas, and the establishment of operational discussion frameworks for regulatory sandbox initiatives within and between agencies in Uzbekistan.
• To ensure the practical implementation of policies and increase the likelihood of achieving results, the decision was made to structure this as a multi-year 'KSP Plus' initiative. In the first year (2022/23), the project included an analysis of Uzbekistan's overall and fintech-related regulations to facilitate the introduction of a regulatory sandbox system. This analysis identified priority tasks and provided recommendations for the operation and management of the regulatory sandbox
  • A senior-level meeting was held with Ilkhom Norkulov, Uzbekistan's First Deputy Minister of Economy and Finance, to introduce the KSP Plus approach. Meetings with 10 organizations, including the Institute of Macroeconomic Research and Forecasting and the Central Bank, helped establish a network for ongoing cooperation.
  • The Policy Practitioners' Workshop in South Korea included participants from various stakeholders in Uzbekistan's regulatory sandbox sector(responsible ministries, implementing agencies, private companies). Through meetings with officials from the Regulatory Reform Office of the Office for Government Policy Coordination, Fintech Center Korea, the KDI Global Knowledge Exchange and Development Center (GKEDC), as well as examples of private sector businesses showcasing fintech innovations (Paywatch, Toss, Kakaopay, and Wadiz), the participants shared insights on the history of financial regulatory reforms in Korea, trends in the fintech industry, and the practical workings of private companies.

Implications

• As the first round of the KSP Plus, it is expected to be linked to additional KSP efforts in 2023/24 and 2025/26. These efforts will extend to the establishment of a regulatory sandbox oversight institution in Uzbekistan and create opportunities for local expansion by Korean private sector businesses while promoting economic cooperation between Korea and Uzbekistan.

Expected Outcomes and Results

• Implementing 2023/24 KSP Plus follow-up activities (designing regulatory sandbox pilot projects for improvement of the business investment environment in Uzbekistan) and making preparations to establish a discussion framework for fintech regulatory sandbox operation in Uzbekistan.
• Uzbekistan Ministry of Justice's presentation of a draft version of an oversight organization for the regulatory sandbox (January 2024)
• Networking between Uzbekistani policy officials and Korean private sector businesses such as Shinhan Card, Toss, Kakaopay, and Wadiz, thus paving the way for these companies to expand into Uzbekistan

Relevant Korean Experience

• Under the leadership of the Ministry of Land, Infrastructure and Transport (MOLIT), Korea has developed a national ITS* master plan and architecture, establishing specialized ITS standardization institutions and operating the ITS Standards Council through the Korea Intelligent Transport Systems Association.Under the leadership of the Ministry of Land, Infrastructure and Transport (MOLIT), a national ITS master plan and ITS architecture (including services, logic, and physical aspects) have been developed. Based on MOLIT's designation and official announcements, specialized ITS standardization institutions were established, and the ITS Standards Council is being operated as a collective standards organization by the Korea Intelligent Transport Systems Association.

  * ITS(Intelligent Transport Systems): A transportation system that applies information technology to resolve issues of congestion, safety, etc.

• Since 1995, Korea has actively participated in ISO/TC204 meetings, enhancing its status in international ITS standardization by contributing experts to all 12 active ISO/TC204 working groups.Since first participating in the International Organization for Standardization Technical Committee (ISO/TC204) meeting in 1995, Korea has continuously advanced in the ITS standardization field over the past 27 years. Korea has enhanced its status in the international ITS standardization arena by dispatching experts to all 12 active working groups within ISO/TC204 and engaging in related committee activities.
• Korea is advancing its ITS industry by establishing an integrated standard system that links official standards (de jure), such as technology standards and KS (Korean Standards), with de facto standards, as represented by collective standards, and performance evaluations.Korea is promoting the development of its ITS industry by establishing an integrated standard system that organically links official standards (de jure), such as technology standards and KS (Korean Standards), with de facto standards, as represented by collective standards, and performance evaluations.

Consultation Topics

• Analysis on Colombia ITS System and Current Status
• Analysis of ITS international standards and advanced ITS construction cases in Korea
• Selection of top-priority item for standardization and development of ITS standard

Background

• In 2020, the Colombian Ministry of Transport developed a national 'ITS Intelligent transport system (ITS): A transportation system that applies information technology to resolve issues of congestion, safety, etc. Master Plan' with the support of the Korean Ministry of Land, Infrastructure and Transport (MOLIT). However, differing ITS approaches employed by local governments and affiliated institutions posed challenges in the use of integrated data.
• In response, the Colombian government selected targets for ITS standardization based on its previously developed national ITS master plan and requested a KSP effort to support technological innovation in Colombia's transportation management policy. aims to ITS standardization-related laws/institutions and governance reorganizations that might be applicable in Colombia, based on Korea's experiences.

Objectives and Consultation Details

Enhancement of Policy Officials' Capacity

• This project aimed to establish clear priorities based on assessment of Korean examples and current conditions in Colombia reflecting the - Colombia's demands in ITS standardization development. It also sought to develop a master plan for related governance (including the establishment of dedicated institutions), draft standards for an incident detection system and propose ideas for follow-up activities to enhance cooperation between Korea and Colombia in the ITS field.
  • Upon project inception, a meeting with the new Minister of Transport, William Camargo Triana, was held to finalize the priority areas in need of smart transportation management according to the partner country's preferences. Colombian policy officials were invited to Korea and Seoul Transport Operation & Information Service (Seoul TOPIS), ITS Korea, Korea Transport Institute. In this Policy PracitionersPractitioners'' Workshop they were introduced to concrete examples of ITS data processing methods in Korea.
  • Officials from different agencies involved in ITS adoption (including the Colombian Ministry of Transport, National Infrastructure Agency, National Disaster Risk Management System, National Roads Institute, and Highway Police) were invited for the Final Reporting of the major KSP findings, specifically a draft of standards for priority standardization services and ideas for governance reorganization in connection with ITS standardization in Colombia.

Implications

• While Colombia is still in the early stages of ITS adoption, this project is believed to have contributed to boosting efficiency and achieving technological innovations in Colombia's intermediate- to long-term transportation management by providing basic research and analysis as well as a master plan for the development of an ITS standardization system.

Expected Outcomes and Results

• The possibility of EDCF-based follow-up project support is currently under review, with an F/S to take place in the second half of 2024* *Project title: 'Establishment of an ITS-Based Smart Road Safety Management System (Support for Installation of Multifunctional ANPR Cameras, Smart CCTV, and System Operation Infrastructure, etc.)'

Relevant Korean Experience

• Korea is striving to promote the growth of its medical industries and bolster their competitiveness in the global market through the K-GMP, MFDS certification, and ISO 13485 quality management system certification systems.

Consultation Topics

• Analysis of Paraguay's Medical Equipment Regulations and Certification System
• Case Study on Korea's Medical Equipment Regulation and Certification System Development Experience
• Proposals for Improvements in Medical Equipment Regulation and Certification System

Background

• Paraguay, having traditionally relied on imports for most of its medical products, realized the urgent need for improvements in the certification system across the medical industry during the COVID-19 pandemic.
• To set the stage for the medium- to long-term development of Paraguay's medical industry, the Ministry of Industry and Commerce requested KSP consultation on strategies for medical industry development and certification systems.

Objectives and Consultation Details

• This project shared the Korean government's experiences in creating and implementing medical industry policies and provided a roadmap for developing a certification system. The aim was to advance Paraguay's medical industries and reduce their dependency on foreign countries.
• To improve certification systems in key areas, the project analyzed the current state of Paraguay's medical industry and Korea's healthcare system development experiences. This analysis identified potential legal and institutional improvements and strategies for fostering Paraguay's medical industry and supporting its international expansion.
  • Exploring the potential for international growth by sharing information about certification systems in neighboring countries like Brazil and successful examples from countries with strong healthcare systems.
• Representatives from the Paraguayan Ministry of Industry and Commerce, the National Environment Sanitation Service, and medical equipment companiesDelegations of Paraguay were invited to the 2023 Korea International Medical & Hospital Equipment Show (KIMES) and BIOKOREA 2023. These visits helped them understand Korea's advanced medical industry certification systems and provided an opportunity to share information about Paraguay's medical industry and its expansion prospects with Korean businesses, while also promoting the KSP project.
• During the final reporting session, three MOUs were signed between Paraguayan government agencies and private companies of Korea and Paraguay.

Implications

• Providing consulting on certification systems and advancing Paraguay's medical industry, the KSP project offered practical support for Korean businesses expanding into the local market. This included organizing briefings on market opportunities in Paraguay, facilitating business counseling sessions, and signing MOUs.

Expected Outcomes and Results

• Four MOUs* signed between Korean government agencies related to the KSP consultation topics and parties, including private sector businesses, the Paraguayan Ministry of Industry and Commerce, and the National Health Surveillance (DINAVISA)
  • *MOU for 'cooperation on medical regulation development and certification system establishment' between the Korea Testing and Research Institute, the Paraguayan Ministry of Industry and Commerce, and DINAVISA
  • *MOU for 'cooperation on bilateral business interchanged for medical industry advancement and certification system improvements' between Synex and the Paraguayan Ministry of Industry and Commerce
  • *MOU for 'cooperation toward the development of marijuana for industry use' between Gyeongsangbuk-do/Andong, the Gyeongbuk Institute for Bio Industry, the Paraguayan Ministry of Industry and Commerce, and the Paraguayan Pharmaceutical Association
  • *MOU for mutual cooperation between the Korean Ministry of Food and Drug Safety and DINAVISA
  • Anticipated results include support toward simplifying certification procedures for Korean businesses hoping to expand in Paraguay and strengthening bilateral cooperation at the government and private sector levels.

Relevant Korean Experience

• ICT-based smart city policies and governance
• Development of integrated smart city platform and integrated city information center

Consultation Topics

• Diagnostic Analysis and Gap Analysis on the Smart City Services, Regulations, and ICT Infrastructure: Based on the Korean Experiences of Integrated Smart City Center
• Policy recommendations and roadmap suggestion for the Integrated Smart City Center implementation and service integration in the City of Novi Sad
• Establishment of a plan for implementing the Integrated Smart City Center and integrating services in the City of Novi Sad

Background

• Since 2014, Serbia has pursued full-scale national reforms with the aim of gaining admission to the European Union, including institutional improvements, infrastructure expansion, and public service reforms. It has also been focusing on national efforts to foster economic growth by developing the ICT industry and digitizing all aspects of society.
  • Through a 2021/22 KSP effort, guidance was provided on the digitalization of public services based on the development of a Serbian smart city model and strategy. Concurrently, insights from a Korean integrated smart city platform were shared.
• This led the city of Novi Sad to request a 2022/23 KSP for a pre-feasibility study for the establishment of its own model of integrated smart city center, in the hope of implementing a similar integration city information platform.

Objectives and Consultation Details

• The city of Novi Sad sought to assess the current state of smart city infrastructure and establish a convergent platform for efficient management by integrating previously independent smart city services.
  • A key focus was the establishment of an Integrated Smart City Center to oversee ICT infrastructure-based data. A pre-feasibility study* was requested in order to determine the potential economic benefits and feasibility.
    * Including analysis of current conditions, the formulation of a target model, implementation plan, etc.
• A delegation led by Novi Sad City Assembly member and project leader Zdranko Jelusic was invited to Korea to visit integrated information centers for transportation and safety areas in the city of Seoul and its districts and learn about Korea's operational systems, stages of platform establishment, and approximate ICT demands.
• During the Final Reporting and a meeting with Novi Sad Mayor Milan Duric, the importance of the institutional foundation and the need for a pilot project were emphasized and follow-up efforts for a feasibility study and pilot study aimed at actual construction were proposed.

Implications

• The Serbian government has expressed its aspirations for further cooperation with Korea in the ICT-based smart city field, and this project could potentially serve as a foothold for increased cooperation between Korea and Serbia, fostering Korean business growth across various sectors.

Expected Outcomes and Results

• Policy suggestions on the establishment of an integrated smart city center have been reflected in Novi Sad's '2030 Urban Development Plan'
  Institutional groundwork has been laid for data integration and linkage, center construction, and smart solution expansion.
• Novi Sad City Assembly is conducting a review for applying to MOLIT's 'K-City Network' project, with the potential for linkage to follow-up projects.

Relevant Korean Experience

• Korea's import and export risk-based management (RBI) activities are distributed across multiple relevant offices (including MOLIT and the Korea Customs Service), with separate laws and institutions for each office.
• Since 2002, the Ministry of Oceans and Fisheries has implemented a hazardous material container inspection system to prevent accidents involving hazardous import and export cargo in ports.
• Since the 2000s, the Korea Customs Service has established an integrated border risk management system to respond to increasing volumes as FTAs went into effect, while introducing a crime prevention cargo selection system, an information-integrating Customs Data Warehouse (CDW) system, and other forms of risk-management infrastructure.

Consultation Topics

• Development of Risk-Based Inspection, Sampling and Management System in the Import Control of Industrial and Engineering Consignments in the Framework of Trade Facilitation at Ports

Background

• Egypt has set a target of achieving an annual growth rate of 7%, while increasing the economic contribution rate of the trade sector to 25%. A particular focus has been to increase distribution efficiency by addressing operational vulnerabilities at its port in Alexandria, including disorganized import item categorization, complex customs procedures, and the absence of a hazardous materials management system.
• To improve its technological standards and bolster the competitiveness of its ports, the Egyptian General Organization for Export and Import Control requested a KSP to gain insights into Korea's experiences in establishing a centralized risk-based inspection (RBI) system.

Objectives and Consultation Details

• Analyses were performed on the risk management procedures used for imported items at Egyptian ports, alongside reviews of relevant laws and institutions. Insights from Korea's cargo risk management practices were leveraged to develop an RBI-system and concrete implementation plan that would be applicable to Egypt's situation.
  • A target model for an RBI system, phased implementation plans, an estimated budget for the project, and the identification of areas of policy improvement for advancing Egypt's port infrastructure.
  • The project was successfully completed in the presence of GOIEC officials, including GOIEC chairman Essam El-Naggar, and policy officials from Alexandria Port Authority (APA).
  • A visit was made to the Alexandria Port Authority (APA) to assess current container risk management practices, and officials in charge of risk management from GOIEC and APA were invited to observe Incheon Regional Customs and the Incheon New Port container inspection center and receive insights into Korea's experiences with establishing an RBI system, while also attending a lecture by a relevant expert.

Implications

• An RBI system for Egyptian ports and implementation plans for each of its stages were proposed, and participants acquired essential technology knowledge for RBI system development. The results are expected to make practical contributions to achieving one of Egypt's key tasks, namely upgrading the effectiveness of risk management for imported items.

Expected Outcomes and Results

• KOICA is conducting a preliminary survey for actual construction of the Egyptian RBI digital system as a follow-up to this initiative
  • Project Title Egyptian General Organization for Exports and Imports Control Import Item Inspection and Tracking Project
  • Dates/Scale 2025–2029 / USD 10 million
  • Project Components Establishment of Egyptian export and import RBI digital system; computerization of sampling and inspection lab (LIMS); establishing of post-customs tracking and inspection system, etc.

Relevant Korean Experience

• In 1994, the Bank of Korea (BOK) instituted BOK-Wire as a real-time system for large transactions, providing services for transactions between financial institutions while offering real-time monitoring to manage the stability of transaction risks.
• The Korea Financial Telecommunications & Clearings Institute (KFTC) was established in 1986 for the establishment of a Korean backbone network for financial computing, improving and offering infrastructure for micro-payments through methods such as QR codes and tax/fee payment systems.

Consultation Topics

• Ascertaining the Current State of the Partner Country's Economic Market, Infrastructure, Legal System, and Institutions and Analyzing Demand
• Researching Korean Experiences In Establishing Digital Financial Market Infrastructure
• Developing Ideas for Digital Financial Market Infrastructure Development and Establishing Implementation Plans

Background

• To achieve 'digitalization of financial market infrastructure' in its smart nation construction program (2017–2022), the Central Bank of Armenia (CBA) has been pursuing the introduction of real-time transfer and non-cash transaction systems to digitize and modernize its financial infrastructure, but it has encountered difficulties due to lack of expertise, among other factors.
  • As a result, the CBA requested this cooperative KSP-EBRD effort to help formulate a medium- to long-term strategy for achieving a digital transition within its financial market infrastructure.

Objectives and Consultation Details

• To advance and modernize the CBA's systems on settlement infrastructure, policy suggestions were provided along with a step-by-step plan for implementation in the following areas
  • Improvements and modernization of real-time gross settlement systems: Areas of improvement suggested for intra-day liquidity, risk-based monitoring, and difference transaction schedule designation.
  • Improvements and modernization of micro-payment infrastructure: Areas of improvement including expansions and improvements in infrastructure for micro-payments and the establishment of a related ecosystem; services suggested and necessary information provided for their adoption.
  • Introduction of a micro-payment monitoring system: Monitoring indicators suggested; experience-based information shared on infrastructure staffing, including cost analysis information.
  • Improvements to payment institution governance: Improvements suggested in terms of payment institution decision-making structures, membership and fee systems, organizational structure and internal regulations, and IT system management.
    • The project was successfully completed in the presence of Central Bank of Armenia (CBA) Deputy Governor Hovhannes Khachatryan and other officials from relevant institutions, including the European Bank for Reconstruction and Development (EBRD).
    • Invitational training for policy officials enabled CBA representatives to deepen their understanding of micro-payment systems and financial platforms through visits to institutions such as KFTC, BOK, and Korea Credit Information Services (KCIS).
    • In particular, meetings with the BOK deputy governor and the KCIS president provided networking opportunities among organizations and confirmed the potential for future collaboration.

Implications

• This joint consulting project with the EBRD provided an opportunity to strengthen partnership with the bank in accordance with its medium- to long-term strategy ('Accelerating the Digital Transition, 2021–2025'), while contributing to the dissemination of digital transition techniques from Korea's financial sector, including the pursuit of similar projects in other states such as Palestine.

Expected Outcomes and Results

• Reflection in Domestic policies : The Central Bank of Armenia initiated efforts to modernize its real-time gross settlement systems (system improvement plan to be developed in 2024), and explored amending relevant laws to improvement micro-payment infrastructure.
• Raising awareness of similar projects in other countries : Project on 'Improving the digitalization of Palestinian financial sector' to be applied for KSP Joint Consulting with EBRD, Similar project proposal with Morocco under examination with support from EBRD

Relevant Korean Experience

Korea has developed various techniques to improve the speed and precision of its flood prediction based on the collection of quantitative and qualitative floodgate information. It has achieved notable success in applying AI- and big data-based digital twinning technology in the water resources sector during the transition to 5G.

Consultation Topics

• Case Study and Relevant Technology Sharing of AI-Big Data-based Flood & Drought Forecasting System
• Basic Design of Flood Forecasting-Warning System (FFWS) using AI-Big Data
• Algorithm Development for AI-based Flood Forecasting and Capacity Building Plan

Background

• The Mekong River Commission* (MRC) Secretariat previously undertook a consultation project titled 'Improvement of Flood and Drought Management Forecasting and Early Warning in the Mekong River Commission' for the 2020/21 KSP year. Subsequently, it sought advice through the 2022/23 KSP on 'Big Data and AI-Based Solutions for Enhancing Flood and Drought Management in the Mekong Basin.'
  * MRC is an inter-governmental organization established in 1995, for the purpose of sustainable water resource management and development in the Mekong River basin, with four member countries, Cambodia, Laos, Thailand, and Vietnam, as well as Myanmar and China as dialogue partners.

Objectives and Consultation Details

• The objective of this project was to assess the current state of improvements to flood and drought management in Mekong basin countries, analyze barriers to development, and propose ideas for the collection of high-quality floodgate data. In the process, it presented a strategy and roadmap for improving flood and drought management through sharing Korea's experiences with the establishment of relevant systems.
  • The project contributed to maintaining reciprocal relationships of economic cooperation and identifying opportunities to enhance private sector water resource cooperation between Korea and the MRC. This initiative reflected the commitment to water resource collaboration highlighted at the 2019 Korea-Mekong summit.
  • For the Policy Practitioners' Workshop, policy officials and experts from MRC member countries were invited to Korea in a delegation led by Anoulak Kittikhoun, who as CEO of the MRC Secretariat was responsible for the project. Joint training was provided to the participants in conjunction with the Global Knowledge Exchange and Development Center (GKEDC).
  • During the Final Reporting and high-level policy dialogue, the final research results were shared, including information on AI- and big data-based drought early warning methodologies and the use of digital twin technology in Korea.

Implications

• Effective policies were proposed to address MRC demands while minimizing losses from flooding and droughts in the lower Mekong basin.
  • Improvements to the big data- and AI-based flood and drought management system are anticipated to reduce disparities in environmental and technological capabilities among individual MRC member countries. These efforts are expected to support the goals of the 'MRC Strategic Plan 2026–2030' and the 'Mekong River Basin Development Strategy 2030–2041'.

Expected Outcomes and Results

• Examination under way on reflection of smart water management in 'MRC Strategic Plan 2026–2030'
• Improving the understanding and capabilities of MRC and member country specialists in AI-based flood early warning systems

Relevant Korean Experience

• Since its liberation in 1945, Korea has increased clean water supplies by constructing large dams and water treatment facilities. The modernization of its water resource management and supply system has continued since the 1970s.
  • Large-scale water supply system introduced with regular testing of 61 water quality standards
  • Efforts to reflect cost-efficiency through testing and automation at small-scale water supply facilities
  • State-level water infrastructure planning and systematic management of maintenance and resource input plans through the establishment of K-water as a dedicated water resources organization (following enactment of the Korea Water Resources Corporation Act)

Consultation Topics

• Gap Analysis on the Status of Water Supply Services in Rural Areas (Jalal-Abad, Chuy Oblasts) of the Kyrgyz Republic
• Korea Experience in Improvement of Drinking Water Supply Systems
• Policy and Infrastructure Reform by Comparative Analysis, Recommendations and Action Plans to Improve Water Supply Services in the Kyrgyz Republic

Background

• The Kyrgyz Republic government has prioritized ensuring stable potable water supplies in its National Development Strategy for the period 2018–2040. It has also approved a resolution for a 'Program for Potable Water Supplies and Sewage Systems in Residential Areas.'
  • Specifically, the government set a goal of building or reconstructing water supply systems for 715 high-priority communities by 2023.
• The government requested KSP policy advice to leverage Korea's expertise in constructing and managing local waterworks and introducing hygiene practices in regions urgently needing improvement as specified in this program.

Objectives and Consultation Details

• This project analyzed the current state of regional water supply infrastructure and constraints on its development in response to the Kyrgyz Republic's plans for safe water supplies and applied various examples of water supply efforts and experiences in Korea to suggest policy-based and technical approaches suited to the local situation.
  • The project was successfully completed as high-level officials of the State Agency of Architecture, Construction, Housing and Communal Services (GOSSTROY), including its director Myrzabek Zhyparkulovich, participated in every stage.
  • For project target regions Jalal-Abad and Chüy, current water supply conditions were analyzed for the regions in question, examples of water supply improvements in Korea were examined, and an implementation plan was developed for improvements to water supply policies and infrastructure.
  • GOSSTROY previously submitted an EDCF application for improvements to water services in 82 regions, and to establish the feasibility of the project, the KSP project team made additional active efforts during the project's implementation to identify potential integrations between the research findings and EDCF projects.

Implications

• In consideration of the scale of local waterworks in the Kyrgyz Republic, the project focused on sharing experiences from different development stages in Korea's history. These ranged from small-scale community-level water supply infrastructure to examples of modernization, such as digitally based integrated control centers. In addition to offering experiences with implications that might be immediately applicable to the Kyrgyz Republic, the project was also designed to allow the partner country to draft a blueprint for future waterworks infrastructure development.

Expected Outcomes and Results

• Anticipated linkage with the Korea Environmental Industry & Technology Institute (KEITI) formulation of an environmental improvement master plan for developing countries (2025)^*

  *To be reflected in 2025 grant aid implementation plan → Development of master plan and discussions with relevant EDCF agency (2025–26) → Feasibility study for EDCF loan program (2026–27) → Project implementation (2027–)

• (Tentative) Benchmarking K-water to establish dedicated water supply management institution

Relevant Korean Experience

Efforts to develop electricity transmission line infrastructure to prevent and respond to climate change

• Smart grid construction: Optimizing electricity supply and demand by combining power infrastructure with ICT
• Region-optimized transmission and transformation infrastructure: Working to establish appropriate transmission and transformation infrastructure for individual regions in order to promote regional energy efficiency and electricity supply stability
• Burial of high-voltage power lines: Increasing the placement of cables underground in urban and other areas to reduce atmospheric pollution associated with high-voltage power lines and incidents involving contact with animals

Consultation Topics

• Analyzing the Current State of Kenya's Climate Change Response Capabilities
• Minimizing Environmental and Social Impacts of Infrastructure Efforts
• Researching Korea's Experiences with Sustainable Electricity Transmission and Transformation Projects
• Developing Ideas for Evaluating Impacts, Benefits, and Achievement of Objectives When Implementing Electricity Transmission and Transformation Projects

Background

• The Kenyan government has been actively expanding electricity transmission and transformation infrastructure. Concurrently, it has been making policy efforts to develop effective climate change response strategies to minimize damage to infrastructure caused by natural disasters and other climate-related effects.
• The Kenyan State Department for Energy and the Kenya Electricity Transmission Company (KETRACO) sought KSP-EBRD joint policy consultation for designing electricity transmission and transformation infrastructure. This included conducting a carbon emissions analysis and other environmental impact assessments to ensure an effective response to climate change.

Objectives and Consultation Details

• The project provided support in developing strategies for assessing environmental impacts to minimize the environmental effects of constructing electricity transmission and transformation infrastructure. Additionally, it offered ideas for designing infrastructure that would minimize damage caused by natural disasters and other effects of climate change, drawing on Korea's experiences in these areas.
  • The project finalized its research scope based on a thorough assessment of the Kenyan government's demands and shared the AfDB's electricity project strategy for East Africa.
  • Through invitational training to Korea for policy officials, participants attended lectures on Korea's technology and experiences in this field and visited major infrastructure sites, gaining insights into methods for minimizing damage from natural disasters such as fires, typhoons, and floods.
  • The Kenyan government expressed hope that the findings would be actively used as foundational data to attract future investments in Kenya's electricity transmission and transformation infrastructure and expressed a favorable position on the findings' potential applicability in shaping policy measures.

Implications

• As part of its 'National Adaptation Plan 2015-2030,' the Kenyan government has set the goal of ensuring sustainable and stable energy supplies to promote climate resilience by 2030. In that regard, the KSP effort has made timely contributions to enhancing the applicability of information for relevant policy officials.

Expected Outcomes and Results

• Approval of associated EDCF-AfDB joint financing project* (USD 100 million/construction of power grid and increased substations)

  *Korea-Africa Energy Investment Framework (KAEIF) agreement reached (June 2021) → Implementation of KSP combined with examination of EDCF-AfDB joint financing → Approval of joint financing program (June 2023)