Background

The international community is facing challenges from unprecedented climate threats, the COVID-19 pandemic and economic downturn.
Countries around the world are hard at work trying to respond to these challenges and achieve sustainable growth by nurturing innovations such as digital technology, green energy and mobility, and smart cities.
For many countries around the world who may be potential candidates for partnership with the Republic of Korea, there is a crucial need to bring in innovative technologies and infrastructure through global partnerships in order to overcome limitations in capital, technology, or infrastructure and keep in step with the global movement towards innovation industries.

EIPP Overview

The Economic Innovation Partnership Program aims to assist the sustainable development of a partner country by helping introduce innovative technologies, build large-scale infrastructure, and improve relevant statutes and systems.
As a policy consultation program, the EIPP provides comprehensive multi-year support ranging from selection of potential projects, overall policy advice, and feasibility analysis, planning for infrastructure projects, assisting in securing the required financing, and expanding overall economic collaboration with the partner country.
Investment seminars and discussion sessions involving companies from both parties help maximize long-term program output.
These efforts promote the participation of enterprise partners and provide an arena for cooperation and information exchange between the public and private sectors.

EIPP Drivers

The EIPP is overseen by the Ministry of Economy and Finance.
To maximize the effectiveness of the EIPP, the ministry entrusts the program to four coordinating agencies, each with excellence in planning socio-economic policies, developing and implementing infrastructure projects, expanding investment and inter-business opportunities, and bridging with private-sector financing.
Building on this collaborative framework, each agency leverages its own expertise and capabilities to maximize the wins of the program and develop and drive infrastructure projects, expand economic cooperation between Korea and the partner country, and ultimately assist the partner country’s sustainable development.

The EIPP is phased over a minimum of three years. Detailed plans for each phase are developed based on the results of the previous phase.
For example, a program for “smart city-building” would begin in the first year with a master plan and roadmap, followed by a preliminary feasibility study based on the results of the first year.
In the third year of the program, feasibility studies are carried out that build on the results of the second year, followed by support for securing financing and rolling out the project for the development of an actual smart city infrastructure.

EIPP Case

One of the EIPP partner countries is the Republic of Indonesia.
With the agenda to relocate the national capital city, the government of Indonesia aims to improve urban and environmental conditions stemming from infrastructure shortfalls, overcrowding in the current capital region, and the consequential ground subsidence, air pollution, and traffic congestion.
As part of efforts to accomplish the goal and also to enhance economic cooperation between Indonesia and Korea, Indonesia took part in the EIPP in 2020 aiming to contribute to successful capital relocation and achieve sustainable growth.
The EIPP has proceeded to provide a comprehensive consultation package for the success of this key initiative that includes basic urban planning, funding plans, energy transition roadmap, and so on.
The scope of consultation will be broadened to land acquisition and utilization, forest city planning, smart transportation, and food security strategies.

Conclusion

Korea has achieved success in digital technology, smart cities, and other innovative industries.

The EIPP’s strengths include Korea’s innovative technologies and infrastructure development capabilities, the socio-economic policies retained by each coordinating agency, and ample experience in infrastructure projects and financing.

Through the EIPP, Korea will continue to aid partner countries achieve innovation and develop infrastructure while boosting economic cooperation between the two countries to help the partner country achieve sustainable development.