As negotiations for a ceasefire in the Ukraine-Russia war gain momentum, the government will begin consulting on Ukraine's economic reconstruction plan starting at the end of this year. The aim is to assist Ukraine, which has suffered from the war lasting over three years, to enhance national prestige and establish a foundation for domestic corporations to secure large-scale infrastructure projects when the reconstruction efforts commence.
According to the government on the 22nd, the Ministry of Economy and Finance has recently selected countries for the '2025-2026 Economic Innovation Partnership Program (EIPP)' and is establishing specific EIPP project plans.
EIPP refers to a long-term policy advisory program introduced in 2020 at the government-to-government (G2G) level, aimed at securing opportunities such as large-scale infrastructure. It serves as a cooperation platform that jointly plans projects with counterpart countries and supports institutional improvements.
The government has conducted EIPP annually for 3 to 5 countries. This year's target countries are six: Tajikistan, Ecuador, the Philippines, Ukraine, Bangladesh, and Czech Republic. Ukraine, Bangladesh, and Czech Republic have been newly added as cooperation target countries.
In particular, during the ongoing war, Ukraine has engaged in cooperation discussions with the Korean government in preparation for the end of hostilities. Having achieved an economic revival known as the 'Miracle on the Han River' following the Korean War, it has shown demand for Korea's economic growth know-how.
A government official explained, 'This is a follow-up to what President Yoon Suk-yeol and Ukrainian President Volodymyr Zelensky discussed during their summit in May 2023,' adding, 'As the war is expected to conclude, we are now able to pursue economic reconstruction cooperation.'
According to the government, Ukraine is pursuing the development of smart cities and industrial complexes in the capital region of Kyiv, aiming for economic recovery and industrial structural transformation. It also intends to revitalize the regional economy through the development of hub cities and infrastructure improvements.
The Ministry of Economy and Finance will carry out two EIPP projects: establishing an economic development roadmap and a comprehensive infrastructure development plan for the Kyiv region, and developing a sustainable energy transition plan for the same area. They plan to provide policy advisory cooperation related to urban development strategies, transport and energy sector infrastructure construction, business promotion, and investment attraction.
The government plans to detail the EIPP project plans by the end of this year and immediately commence the projects. A budget of 1.535 billion won has been allocated for the government's advisory cooperation.
A government official noted, 'Since the methods of assistance differ for each project, the means of securing funds also vary,' adding, 'For large-scale projects such as infrastructure, the funding could be secured through the Economic Development Cooperation Fund (EDCF), which guarantees revenue with minimal initial private investment.'
The government hopes that this EIPP will increase the likelihood of domestic corporations winning contracts for large-scale infrastructure projects in Ukraine. By forming a network with senior officials of the EIPP target countries during the advisory process, the chances of our corporations winning bids for related projects are expected to rise.
A Ministry of Economy and Finance official stated, 'We will track the outcomes, including whether local policies are reflected in completed projects, and identify follow-up projects,' adding, 'We will support the entry of our corporations.'