South Korea is an emerging development aid donor, and its international development industry is rapidly expanding.
One reason: At the end of 2009, South Korea joined the Organization for Economic Cooperation and Development’s Development Assistance Committee, which requires each member state to spend 0.7 percent of its gross national income on official development assistance by 2015. The following year, South Korea’s aid budget increased nearly 25 percent; further increases are expected.
Two government institutions – the Korea International Cooperation Agency and the Economic Development Cooperation Fund – provide most of South Korea’s ODA, often to domestic conglomerates and corporations such as Samsung. But a variety of non-governmental organizations are also bidding – and winning – procurements, and expanding overseas operations.