Korean official development assistance increases by 11%

Korea’s Official Development Assistance (ODA) Increases by 11.4% in 2023

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Introduction

Korea’s official development assistance (ODA) amounted to $3.13 billion in 2023, representing an increase of 11.4% compared to the previous year, according to data from the Organization for Economic Co-operation and Development (OECD).

Ranking among OECD DAC Member States

Korea is ranked 14th among the 31 OECD Development Assistance Committee (DAC) member states in terms of ODA.

Bilateral and Multilateral Aid

Both bilateral aid ($2.3 billion) and multilateral aid ($830 million) increased evenly, according to a press release from the Foreign Ministry introducing the OECD DAC data. Bilateral aid refers to government assistance given directly to the government of another country, while multilateral aid refers to indirect assistance given through international organizations.

Exchange Rate Fluctuations and Investments

The data showed that while the fluctuations of the won-dollar exchange rate have slowed compared to the previous year, investments and contributions to international financial organizations such as the World Bank and the International Monetary Fund (IMF) have increased.

Bilateral Aid Increase

Bilateral aid increased by 3.4% compared to the previous year, with both grant assistance and concessional loans increasing. Grant assistance reached $1.57 billion, while concessional loans amounted to $730 million.

Grant Assistance

Support for social sectors such as education, health, public administration, humanitarian aid for overseas emergency relief, and support for vulnerable communities increased by 2.6% compared to the previous year.

Concessional Loans

Concessional loans increased by 5.1% compared to the previous year as loan support expanded due to increased financial demand from recipient countries for climate change responses and industrial development.

Total ODA Amount from OECD DAC Member Countries

The total ODA amount from the 31 member countries of the OECD DAC was $223.7 billion in 2023, representing an increase of 6.2% compared to the previous year.

Ratio of ODA to Gross National Income (GNI)

The ratio of ODA to gross national income (GNI), which indicates the scale of ODA support relative to the size of countries’ economies, was 0.18% for Korea in 2023. This represents an increase of 0.01 percentage points compared to the previous year.

Future Plans

“Despite the austerity fiscal policy, the ODA budget for 2024 had the largest ever increase of 31.1% to $4.7 billion, in order for Korea to perform a role commensurate with our growing status as a global power,” said the Foreign Ministry in a press release. The Korean government plans to continue expanding the scale of ODA to actively respond to demands for international development cooperation, such as humanitarian support for conflict and disaster areas and responding to climate change.

BY LIM JEONG-WON [lim.jeongwon@joongang.co.kr]

SDGs, Targets, and Indicators

1. SDG 17: Partnerships for the Goals

   • Target 17.2: Increase in official development assistance (ODA) from developed countries to developing countries.
   • Indicator: Korea’s official development assistance (ODA) amounting to $3.13 billion last year, an increase of 11.4 percent compared to the previous year.

2. SDG 1: No Poverty

   • Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
   • Indicator: Bilateral aid increased by 3.4 percent compared to the previous year, with both grant assistance and concessional loans increasing to $1.57 billion and $730 million, respectively.

3. SDG 4: Quality Education

   • Target 4.1: By 2030, ensure that all girls and boys complete free, equitable, and quality primary and secondary education leading to relevant and effective learning outcomes.
   • Indicator: Support for social sectors such as education increased by 2.6 percent compared to the previous year.

4. SDG 3: Good Health and Well-being

   • Target 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential healthcare services, and access to safe, effective, quality, and affordable essential medicines and vaccines for all.
   • Indicator: Support for health sectors increased by 2.6 percent compared to the previous year.

5. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
   • Indicator: Concessional loans increased by 5.1 percent compared to the previous year due to increased financial demand from recipient countries for industrial development.

6. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Indicator: Concessional loans increased by 5.1 percent compared to the previous year due to increased financial demand from recipient countries for climate change responses.

Table: SDGs, Targets, and Indicators

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Source: koreajoongangdaily.joins.com

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