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Global Development Partnership and Market Strategies in National Infrastructure Sector in G20 Era

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SPACE & ENVIRONMENT is primarily intended to help foreign experts and pro- fessionals in relevant fields understand overall present situations of spatial plan- ning and policy of Korea, and published quarterly by KRIHS.

KRIHS is a government-sponsored research institute founded in 1978 to carry out research on territorial planning and poli- cies of Korea.

Assessment of Urban Disaster 1 Vulnerability and Measures for Adaptative Capacity Improvement Global Development Partnership 5 and Market Strategies in National Infrastructure Sector in G20 Era

Issue & Trend 9

In-Depth Look 11

Global Partnership 13

News & Announcements 17

Need for creation of cities adaptive to climate change

N

atural disasters have recently taken place at a larger scale in more diverse forms due to the influence from climate change.

Furthermore, urban development without any consideration of disaster prevention has further increased the damage from natural disaster.

For effective adaptation of cities to disasters caused by climate change, spatial assessment is needed to find out vulnerable areas and the level of vulnerability to climate change. It is also necessary to develop projects for urban adaptive capacity to mitigate the risk of disasters in vulnerable areas, depending on their spatial characteristics.

In this regard, this study presents the framework for disaster vulnerability assessment method including the setting of indicators and methodologies for climate change vulnerability assessment. It aims to develop and introduce projects for improvement of urban adaptive capacity to reduce the vulnerability to climate change disasters.

Vulnerability assessment for urban disaster by clmate change

In accordance with the IPCC (Intergovernmental Panel on Climate Change)’s concept of vulnerability assessment, the climate change disaster vulnerability is analyzed based on the climate of each region (climate exposure) and the physical/structural characteristics of disaster vulnerability (urban sensitivity), which is rated from Grade I to Grade V. It should be noted, however, that the assessment in this study does not include quantification of each municipality’s adaptive capacity to disasters including their disaster policy which is significantly difficult to be quantified.

Based on research on creation of cities adaptive to climate change conducted by the Ministry of Land, Transport and Maritime Affairs in 2011, disaster vulnerability assessment was carried out across

Sim Ou-bae, Director of the Center for Urban Disaster Management Policy

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diverse types of climate change disasters such as floods, heat wave, heavy snowfalls, drought, strong winds, and sea level rise. A municipality-specific data base (DB) was built regarding the indicators that give or receive dominant influence from each disaster type, and was divided into spatial information and attribute information. This assessment presents the present and future (the year of 2100) disaster vulnerability of 232 cities, districts and boroughs in Korea. This is shown in Figure 2.

As a result of the flood vulnerability assessment, 88 municipalities (37.6%) were analyzed to be vulnerable to floods at present. Vulnerable areas included Seoul Capital Area, Gangwon Region and the southern coastal area in Honam and Youngnam Regions. The assessment shows that in the future areas vulnerable to floods will slightly increase to 93 municipalities (40.1%) across the country, with Gangwon Region showing an increase in vulnerable areas.

In the heat wave vulnerability assessment, it was found that 64 municipalities (27.6%) are vulnerable to heat wave at present. Youngnam Region as well as Seoul Capital Area showed a higher vulnerability figure. In the future vulnerability assessment, areas vulnerable to heat wave slightly decrease to 52 municipalities (22.4%), but the future heat wave vulnerability spreads from southern areas through the west coast to the central part of the country.

The heavy snowfall vulnerability assessment shows that 61 municipalities (26.3%) are currently vulnerable to heavy snowfalls. Areas from Gangwon Region, Chungcheong Region to Honam

Region are highly vulnerable to heavy snowfalls. All areas of Gangwon Region, in particular, were found to be the most vulnerable to heavy snowfalls in the country. For the future, areas with heavy snowfall vulnerability increase a little to 67 municipalities (28.9%) by 2100. The assessment also found that areas vulnerable to heavy snowfalls at present are expected to remain vulnerable in the future, with Chungcheong Region experiencing a big increase in vulnerable areas.

In the drought vulnerability assessment, 84 municipalities (36.2%) were analyzed to be vulnerable to drought at present.

Vulnerable areas included Youngnam Region, the southern coastal areas of Honam Region, and Gangwon and Gyeonggi Regions. In the assessment on drought vulnerability for the future, Honam Region will experience a significant increase in the number of areas vulnerable to drought, but vulnerable areas throughout the country will slightly decrease to 78 municipalities (33.6%) by 2100.

In the assessment on strong wind vulnerability, it was found that 14 municipalities (6%) are vulnerable to strong winds at present. Coastal areas around Jeju Island and Honam Region as well as part of the coastal areas of metropolitan areas are vulnerable to strong winds. The assessment shows that in the future the number of areas vulnerable to strong winds will more than triple to 46 municipalities (19.8%) by 2100, due to the influence from higher climate exposure throughout the country.

The assessment on sea level rise vulnerability shows that 27 municipalities (35.5%) of the total 76 municipalities are currently vulnerable. Western and southern coastal areas in Honam region and southern coastal areas in Youngnam took up larger portion in the number of vulnerable areas, and some of the western coastal areas of Chungcheong Region were found to be vulnerable as well. In terms of the future vulnerability, areas that are currently vulnerable to sea level rise are likely to remain so in the future.

Vulnerable areas will increase in Youngnam Region, and the number of vulnerable municipalities across the country will be 28 municipalities (36.8%), which is similar to the current level.

Urban Vulnerability to Climate Change Disaster Adaptive Capacity Climate Exposure Urban Sensitivity

Urban Potential Vulnerability

Figure 1: Concept of analysis on urban vulnerability to climate change disasters

Source: Ministry of Land, Transport and Maritime Affairs (2011), Research on Creation of Cities Adaptive to Climate Change (the first annual research)

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Measures for improvement of urban adaptive capacity to climate change

For cities to adapt to frequent and large-scale disasters caused by climate change, it is necessary to use the existing traditional disaster prevention system as well as the “total disaster prevention system” in connection with all relevant factors such as land use, infrastructure, buildings and citizens. Total disaster prevention system also enables a comprehensive response to disasters by sharing the risk of disasters. To this end, customized measures are required to improve urban adaptive capacity to climate change, based on the disaster vulnerability assessment result stated above and through classification of disaster vulnerability types depending on the disaster characteristics and spatial characteristics.

Therefore, this study presents measures for improvement of urban adaptive capacity by classifying the type of vulnerable areas into details to consider the spatial vulnerability characteristics of relevant municipalities based on the disaster vulnerability assessment results using GIS.

Areas vulnerable to floods were classified into

‘flood vulnerable areas’, ‘landslide vulnerable areas’ and ‘weighted runoff areas’, considering the vulnerability characteristics such as damage from stream flooding, inundation, landslide and increase of rainfall runoff.

Flood vulnerable areas need to create cities with sound water cycle through a prompt rainwater exclusion as well as green/water/earth methodology for improving the fundamental attribute of cities from a long-term perspective. For landslide vulnerable areas, it is important to create a buffer zone near the mountain area and to undertake slope management preparing against any landslide or debris flow. Such influence on the nearby weighted runoff areas should be minimized through a project aimed at minimizing impervious areas. This is summarized in Figure 3.

Heat wave vulnerable areas were classified into

‘urban high-temperature areas’ and ‘heat wave- weighted areas’ in consideration of the vulnerability characteristics including the damage from high temperature and aggravation of urban temperature rise.

For urban high-temperature areas, it is necessary to lower the urban temperature itself by

Type of

disaster Present Future (2100)

Floods

V Grade Vulnerability Grade

IV Grade III Grade II Grade I Grade Youngnamoungnam

regionegion Youngnam

region

V Grade Vulnerability Grade

IV Grade III Grade II Grade I Grade

Heat wave

V Grade Vulnerability Grade

IV Grade III Grade II Grade I Grade

Heavy snowfalls

V Grade Vulnerability Grade

IV Grade III Grade II Grade I Grade

Drought

V Grade Vulnerability Grade

IV Grade III Grade II Grade I Grade

Strong winds

V Grade Vulnerability Grade

IV Grade III Grade II Grade I Grade

V Grade Vulnerability Grade

IV Grade III Grade II Grade I Grade

Figure 2: Result of vulnerability assessment

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improving the fundamental attribute of cities through the use of green/water/wind methodology. Damage on human life should also be minimized through projects aimed at improving urban adaptive capacity to high temperature. For heat wave-weighted areas, it is important to focus on adopting projects to lower the land surface temperature such as urban greening and wind path projects.

Heavy snowfall vulnerable areas were classified into

‘vulnerable building areas’, ‘avalanche vulnerable areas’, and ‘isolation vulnerable areas’ in consideration of the vulnerability characteristics including the damage from collapse of buildings, damage from avalanche, and isolation in mountain areas.

Vulnerable building areas need to implement stricter design standards to prevent collapse of buildings and carry out repair and maintenance for old and temporary buildings. For avalanche vulnerable areas, it is needed to install snow fences in the steep slope areas in order to minimize the damage on buildings and roads due to avalanche. Efforts should be made to prevent isolation vulnerable areas from being cut off due to road closures by using rainwater, wastewater, underground water and waste heat or by conducting road freezing prevention projects including installation of heating cable.

Drought vulnerable areas were classified into

‘areas short of water resources’ and ‘areas lack of water supply’.

It is important for areas short of water resources to effectively manage limited water resources through projects to establish decentralized stormwater management system or to install wastewater reclamation and reusing system. For areas lack of water supply, it is necessary to carry

out diverse water resource development projects and gushout water/underground water conservation projects, which will help secure water resources for stable water supply. These areas also need recycling projects such as treatment and recycling of stormwater/wastewater and installation of wastewater reclamation and reusing system.

Areas vulnerable to strong winds were classified into ‘areas with vulnerable facilities’ and ‘areas exposed to strong winds’ in consideration of the vulnerability characteristics such as the damage on facilities including signboards and telephone poles and the damage due to inflow of winds.

Damage on areas with vulnerable facilities should be minimized by conducting repair and maintenance projects for the outdoor signboards of buildings as well as for street trees and telephone poles. For areas exposed to strong winds, it is necessary to create windbreak forest around coastal areas and deploy block housing for repair and maintenance of housing.

Areas vulnerable to sea level rise were classified into ‘areas vulnerable to coastal erosion/flooding’

and ‘areas vulnerable to coastal inundation’ in consideration of the damage from sea water flooding/coastal erosion and the damage from coastal inundation.

For areas vulnerable to coastal erosion/flooding, it is needed to reinforce the design of infrastructure and buildings in the short term, while improving the use of land such as preparing a buffer zone in the long term. Areas vulnerable to coastal inundation require stronger functions of inundation prevention and ground elevation of low lands.

Sim Ou-bae (obsim@krihs.re.kr)

Indicators for Areas with

Potential Flood Vulnerability Length of stream Rate of areas at or below the average altitude in

each municipality

Rate of steep slope areas Rate of areas

with landslide risk Impervious cover rate

Flood Vulnerability Characteristics

Damage from stream flooding

Classification of Areas

Vulnerable to Floods Flood vulnerable areas Landslide vulnerable areas Weighted runoff areas

Damage from

inundation Damage from landslide Damage from landslide Increase of rainwater runoff

Figure 3: Classification of vulnerable areas in consideration of flood vulnerability characteristics

Source: Ministry of Land, Transport and Maritime Affairs (2012), Research on creation of cities adaptive to climate change (the second annual research): Analysis on the disaster vulnerability characteristics and research on the measures for adaptive capacity improvement of cities

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Background and purpose of study

K

orea has strengthened the foundation for economic development by establishing national infrastructure taking advantage of international aid.

As Korea became a member of Development Assistance Committee (DAC) under the Organization for Ecomomic Cooperation and Development (OECD) and G20, the status of Korea has improved from a recipient country to a donor country.

Accordingly, the need for strengthening development partnership is essential for the economic development of a recipient country. Donor countries give aid as a true partner of recipient countries not out of necessity.

Korea has executed development partnership projects mainly through concessional loans (project financed by loan) and the scale of aid was very small.

In addition, infrastructure projects for the economic development of a developing country through large- scale development project have been very limited.

Changes in OECD DAC architecture (modality) require improvement of aid effectiveness, adoption of various aid modalities and expansion of the aid scale and accordingly, the aid modality of Korea is moving in a direction that accepts development partnership for the economic development of a developing country. It is necessary to explore various strategies of using financial resources and finance along with development partnership in national infrastructure sectors for the development of a developing country and concessional loan and grant for development partnership.

Therefore the purpose of the study is to respond to environment of the G20 global development partnership, as well as to explore strategies on improvement of development effectiveness and market penetration and to present ways to strengthen capabilities to realize the strategies. It is possible to achieve economic development of a developing country and increase national interests at the same time by increasing the role of Korea that corresponds to international status through market strategy suitable for global development partnership and by linking development partnership to market strategy.

Scope of national infrastructure in global development partnership

Global development partnership serves as a means to improve the development effectveness of a developing nation and encompasses the existing concept of international cooperation to improve development effectiveness including development aid.

National infrastructure means the “establishment of physical fixed capital” in the national territory, which is realized by construction projects composed of various kinds of facilities including civil works, construction and plant. In short, national infrastructure includes transportation infrastructure (road, railway, port, airport), energy infrastructure including power generation, water resources infrastructure (waterworks, sewerage, dam), and urban infrastructure including urban development. Along with infrastructure that is under scope of development partnership, the functions of planning, designing, construction and maintenance are very important for global development partnership in national infrastructure sector to provide and operate such infrastructure.

In other words, the scope of global development partnership in national infrastructure sector includes not only planning for overall national infrastructure and comprehensive establishment plan for individual infrastructure but also planning and executing individual facilities as well. In short, the establishment of master plans on national infrastructure by area and planning, designing, construction and maintenance of specific projects under the master plan can be included in the scope of the global development partnership.

Status of market penetration through development partnership in national infrastructure sector

To analyze the current state of development partnership in the national infrastructure sector, cooperation is classified into official development aid (grant and concessional loans), contribution and

Global Development Partnership and Market Strategies in National Infrastructure Sector in G20 Era

Kim Sung-il, Research Fellow

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investment by international organization and overseas market penetration without aid (general private development project and contract work).

Overseas market penetration through concessional loans and grant

The concessional loan is provided by Economic Development Cooperation Fund (EDCF), which is representative official development aid and includes contribution by international multilateral development banks. For the past ten years (2001-2010), Korean companies recorded about 4.8 billion dollars in overseas aid in the form of concessional loans but have not been making the full use of concessional loans from the perspective of diversification of financing and importance of a multilateral development bank which is regarded as an effective way for projects based on development with investment.

Korean companies received orders amounting to 2.7 billion dollars for the past 10 years through Asian Development Bank (ADB), which is the main channel that is predominately utilized by Korean companies.

On the other hand, achievement through multilateral development banks including World Bank (WB) and Inter-American Development Bank (IDB) is very low.

In the case of grant, Korean companies receive project orders worth about 0.2 billion dollars by winning 153 projects in 32 countries based on capital of Korea International Cooperation Agency

(KOICA) for the past 10 years. In the mean time, Korea received orders worth only 0.17 billion dollars by winning 12 projects in 7 countries through International Development Association (IDA). It shows that Korea’s grant scale is relatively low compared to that of advanced countries.

State of overseas market penetration in national infrastructure sector without aid

The performance of overseas market penetration without aid is bigger than that of overseas market penetration with aid. However, most of the work is in the form of contract work and the number of overseas market entries in the form of investment and development is a mere 68 entries for the past 10 years with a very small volume. The scale of overseas market penetration in the form of development cooperation aid is much less than that of overseas market penetration without aid.

Expansion of overseas market entries linked to aid for development cooperation is more required to improve aid effectiveness in the future.

Market strategy linked to global development partnership in national infrastructure sector

Strengthening global development partnership customized to demand for infrastructure investment in a developing country

Concessional Loans

The Number of Countries

The Number of Companies

The Number of Construction Projects

The Number of Owners

Accumulated Amount (Unit: billion dollars)

EDCF 23 63 110 54 1.45

ADB 18 36 74 35 2.69

WB 8 14 15 12 0.32

AfDB 4 5 5 5 0.07

IDB 1 1 1 1 0.28

Sub-total 4.81

Grant The Number of Countries

The Number of Companies

The Number of Construction Projects

The Number of Owners

Accumulated Amount (Unit: billion dollars)

KOICA 32 67 153 13 0.2

IDA 7 6 12 10 0.17

Sub-total 0.37

Table 1: State of overseas market penetration through concessional loans and grant (2001-2010)

Source : International Construction Information Service of International Contractors Association of Korea, July, 2011

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Global development partnership in a national infrastructure sector with a developing country can be customized considering the condition for the national infrastructure establishment of the developing country. It is necessary to classify developing countries based on the condition for national infrastructure establishment and the contribution of official development aid to gross fixed asset formation and apply appropriate development cooperation architecture including official development aid, multilateral cooperation projects partnered or linked with international organizations and development banks and public private partnership.

It is necessary to estimate the level of national infrastructure development and future prospects, establish areas for global development partnerships and come up with a way to pursue projects for development cooperation in a systematic way to strengthen global development partnership customized to demand for infrastructure investment in a developing country. The areas for cooperation and methods to pursue project should be listed considering priority and customized reflecting demand of a developing country (recipient county).

Strategy to strengthen business perspective of global development partnership including national infrastructure planning

In the process of pursuing global development partnership, the strategy to strengthen business link that starts from national infrastructure planning in a developing country and flows to planning and identification of project, engineering, construction and post management is required.

To be specific, in case of global development aid related to the plan on the establishment of national

infrastructure in a developing country, it should lead to planning and identifying business and a feasibility study for follow-up development cooperation and finally actual project.

First, sharing information on projects based on concessional loans and grants like support for national infrastructure planning and organizing a task force dedicated to national infrastructure are required to this end. Effectiveness of development cooperation can be improved by establishing a support system that enables identifying new possible projects for development cooperation, conducting marketing activities to win projects, and providing support for activities related to design engineering, construction and management.

Second, market strategy to enter overseas infrastructure sector with a concept of total service should be established through public private partnership. High added value can be realized by providing total service from planning for national infrastructure (feasibility study, analysis, basic design and detailed design at the individual business level), construction, maintenance and management in global development partnership for national infrastructure.

Strategy based on public private partnership is effective for global development partnership and overseas market entry. The strategy that enables the establishment of cooperation structure based on trust, clear institutional arrangement and guarantee on the autonomy of the private sector and reshaping the role of the government should be explored.

Strategy to utilize finance from multilateral perspective for large-scale development cooperation project

The initial step is to strengthen the usability of international development cooperation project as a result of capital increase in international development

Delivery Method The Number of Countries

The Number

of Companies The Number of Construction Projects Accumulated Amount (Unit: billion dollars)

Contract Work 117 632 3,477 239.84

Finance by Constructor 8 6 11 1.56

Investment and Development 15 42 68 10.62

Total Amount of Overseas Market

Penetration without Aid 140 680 3,556 252

Source : International Construction Information Service of International Contractors Association of Korea, July, 2011

Table 2: Performance of overseas market penetration without aid (2001-2010)

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banks. It is expected that the governments around the world are eager to pioneer overseas market or secure negotiation channels in a developing country with growth potential by participating in capital increase of the international development financial institutions and strengthening their say in the international community based on reasonable finance management plan.

In response to such an international move, it is required to make efforts to explore overseas market and secure negotiation channels in a developing country by participating and utilizing capital increase in international development financial institutions.

The second step is international cooperation through inclusive finance including funds for development cooperation. For global development partnership in national infrastructure sectors, advances into planning areas are important, but what is more important is vitalization of comprehensive and multilateral syndicated loans (vitalization of large-scale project and investment development type) to make the project success. Syndicated loans at the bilateral and multilateral level through Export Credit Agency (ECA) and the Multilateral Development Bank (MDB) can be recognized as an effective means in the international financial market

because this method enables support for large-scale projects with limited resources.

Strengthening capability to enter market through development cooperation

Six ways are presented to strengthen the capability to enter the market through development cooperation in national infrastructure shown in the above figure under the basic strategy.

- Plan to expand and utilize global infrastructure funds

- Strengthening marketing capability to win project in global development partnership - Advancement of project execution structure - Reshuffling organization for international

cooperation and market entry in national infrastructure sector

- Strengthening capabilities related to planning national infrastructure

- Expanding multilateral support from international development banks like MDB and dispatching experts

Kim Sung-il (sikim@krihs.re.kr)

Strengthening Global Development Partnership Customized to Demand for Infrastructure Investment in

a Developing Country

Strategy to Strengthen Business Perspective of Global

Development Partnership including National Infrastructure Planning

Strategy to Utilize Finance from Multilateral Perspective for Large-scale Development

Cooperation Project

Plan to Expand and Utilize

Reshuffling Organization

Strengthening Marketing Capability to Win Project in Global Development Partnership

Strengthening Capabilities related to Planning National

Infrastructure

Advancement of Project Execution Structure

Expanding Multilateral Support from International Development Banks like MDB and Dispatching Experts Global Infrastructure Fund

Figure 1: Market strategy and ways to strengthen capability

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T

hese days, paradigm shift is underway from economic growth focusing on economy to happy life focusing on humans. It means that the era where competitiveness of a nation and a city was evaluated by economic growth has passed and the new era that pays attention to human value and happiness of life has come. Already, countries around the world recognized the limitation of indexes focusing on economic power including Gross National Product (GNP) and Gross Domestic Product (GDP) and have utilized indexes to measure happiness of life including Your Better Life Index, Human Development Index (HDI) and Happy Planet Index (HPI).

Even though Korea ranked 15th in economic power (per capita GDP), Seoul, which is a representative city in Korea, is in the 80thspot for quality of living according to a survey conducted by Mercer Human Resource (MHR) Consulting. This survey shows that quality of life of Koreans is very low. Seoul lags behind some cities in Asia like Singapore (25th), Tokyo (46th), Hong Kong (70th) and Kuala Lumpur (76th).

Changes in urban space in the low growth era

For the past half century, Korea has concentrated on preservation of national land and investment in infrastructure for production base to support a rapid economic growth. Providing infrastructure related to industrial sector, which is directly linked to economic development, was the best option under limited economic conditions. However, such development- centric investment and supply is not the best option any more as life paradigm shift is underway and Korea is entering the low growth era.

In the low growth era, demand for spatial development is reduced significantly due to slowdown

of economic activities and purchasing power of consumers for space like land for housing is decreased with reduction of income. In addition, changes in industrial structure make existing space less useful and create demand for space related to a new industry.

In case of the United States, cities in the eastern part like Detroit declined as the country experienced changes in industrialization cycle and economic slowdown in the 1970s and 1980s while newly-grown cities emerged in the southwestern part of the country like Orange County led by new industry. Japan also witnessed significant decline of small and medium sized cities in provinces and new cities in suburbs while the status of Tokyo as a global city was falling greatly due to prolonged recession and bubble burst in the 1980s and 1990s.

Korea shows marked decline in old downtowns except for some cities in metropolitan area. Overall, low economic growth creates a new space that can accomodate low growth by causing population reduction in existing cities and dismantling existing space customized to rapid growth. Free spaces and resources left due to low speed of growth lead to increase in interest in and demand for “soft”

infrastructure like culture, environment and welfare, which was not well established in cities in the growth period. Supply of soft infrastructure that improves the quality of a city can be a factor that is able to resolve urban issues under rapid growth and change an existing city into a good city.

Good city and soft infrastructure

Decent jobs, a good community where people can feel affection with each other and proper infrastructure that eliminates inconvenience of living are a prerequisite to be a “good city”.

Infrastructure is broadly classified into hard

I I SSUE & TREND

Infrastructure in the Low Growth Era:

Changes in Urban Space and Soft Infrastructure

Cho Pan-ki, Research Fellow

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infrastructure and soft infrastructure. So far, Korea has regarded hard infrastructure as infrastructure.

For example, soft infrastructure like sports facility, parking lots, cultural facilities and social welfare facilities are regarded as additional facilities that should be formed at residents’ cost.

However, demand for soft infrastructure that is closely related to life of citizens is growing stronger.

Soft infrastructure can be defined as the whole infrastructure necessary for daily lives of people including sleeping, eating, nurturing children, supporting the elderly, working and taking a rest.

Soft infrastructure also includes facilities for the convenience of life including hospitals, pharmacies, banks, post offices, police substations, parks and community centers, child-care facilities like child- care centers, kindergartens, parks for children and children’s hospitals, elementary schools, middle schools and high schools, libraries for teenagers,

sports facilities, rest areas for teenagers, universities, facilities for adults including libraries and sports centers, welfare facilities for the elderly and transportation facilities necessary for daily lives. It is shown in Figure 1. When the current state of soft infrastructure supply in Korea is compared with other countries, Korea has higher park ratio of 16.7% with park area of 101km2, compared to that of cities in other countries but per capital park area considering the number of people is low. The area of sports facility per capita is about 1.32m2per person including indoor and outdoor area, which is a mere 12 to 30% of that of Germany and France. For cultural facilities, the number of museums and theaters is very low given the population size compared to that in other OECD member countries.

Overall, soft infrastructure of the cities in Korea is in short supply from a quantitative perspective indicating low quality of life of citizens in cities.

Urban environment in the high growth era where pursuing land and construction development interests was emphasized and urban environment in the low growth era where software for urban development is considered as a priority are different. It is clear that investment in infrastructure closely related to life is necessary in Korea where low growth era already started taking reduction in demand for development as an opportunity to strengthen qualitative urban management.

Therefore, it is time to make changes from

“declining city” to “good city” through virtuous circle where soft infrastructure is properly provided to existing cities, environment for living is improved and pleasant environment for living gets population back.

Cho Pan-ki (pkcho@krihs.re.kr)

Classification Seoul New York Toronto London Beijing Berlin Tehran Tokyo Paris

Park Area ( ) 101 81.15 73.65 173.2 51.34 83.10 28.80 37.85 22.0

Park Ratio (%) 16.7 9.73 11.69 10.93 0.31 9.32 2.40 6.09 20.95

Per Capita Park Area

( /person) 9.9 10.27 29.69 24.15 4.52 24.5 4.7 4.46 10.35

Table 1: Status on the supply of park in major country

Figure 1: Characteristics of high urban growth and slow urban growth

Source : Ministry of Land, Infrastructure and Transportation webpage, Statistics on urban environment and park, 2011

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T

he Road Policy Research Center (RPRC) was established as part of Korea Research Institute for Human Settlements (KRIHS) in July of 2007 to serve as a cradle of comprehensive and future- oriented road policy research. The RPRC performs roles and responsibilities as a think tank in the road sector to support and ensure consistent road administration and policies based on comprehensive, systematic and scientific policy establishment. It has maximized the synergy effect in its research performance through closer networking with other road-relate research institutes while fulfilling its obligation as a core organization to support drawing up future-oriented road policy.

Objectives

The RPRC was created with an objective to support comprehensive and systematic research for future- oriented road policy establishment. In other words, the center accumulates road policy-related data and develops major policies to prepare systematic and comprehensive road improvement plans and rational investment plans based on the data, assisting the government’s policy establishment. It also makes contribution to policy establishment based on the latest and accurate information. To this end, the center collects data regarding the current road status across the country as well as the latest data of road development projects over a certain scale for road plans targeting roads above the level of provincial roads. It also manages any additional plans and changes regularly. Another important objective is to propose responsive measures to changes by forecasting potential changes in the road sector at home and abroad. As a key organization in charge of networking among diverse research institutes, the RPRC also draws up a roadmap for

establishing road policy and helps relevant research institutes share roles in an effective manner.

Major roles

The RPRC is staffed with professional researchers and is committed to the following roles.

Support for national road policy and plan

It develops policy tasks for transport and road, while collecting and receiving the opinions and policy advice from experts on a constant basis through the Road Policy Review Committee. The center also keeps notes about major policies and plans in order to keep the records about the implementation results of domestic and overseas road policies and road plans. It analyzes road policies of advanced countries through academic exchange with them. It also publishes the monthly Road Policy Brief to introduce briefly about the information needed for road policy establishment such as road policy trends at home and abroad, along with the latest news about overseas roads.

The publication serves as the latest information source, which is helpful for people in the road- related industry.

Review and advisory on road master plans

Basic road improvement plans are being established not only by the central government but also by local municipalities. The center reviews diverse elements including vision and objectives of basic road improvement plan and whether the plan is aligned or overlapped with higher level plans in order to assess adequacy of the basic road improvement plans drafted by each municipality. The center is also in

I I N-DEPTH LOOK

Road Policy Research Center

Kim Ho-jeung, Director of the Road Policy Research Center

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general charge of adjusting the road network framework and priorities in those plans. To this end, it sets up and renews the DB containing information about the origin/destination of travel, network, plans for nearby road network expansion, and the land-use plans of the central government and municipalities. It also collects and sets domestic and overseas road- related policy indicators.

Assessment of road investment projects

The center reviews feasibility of road projects and management of relevant investment performance, in order to ensure efficient execution of limited budget.

It analyzes pending issues including redundancy of investment as well as conflict factors and proposes alternatives by reviewing the feasibility of national road plans, urgency of relevant projects, various design analysis results, and preliminary feasibility survey results.

Research for long-term road plan

It carries out short-term tasks to build up data base needed for developing and determining policies. It also puts together road-related research results by utilizing road transportation experts as well as the inner pool of diverse professional personnel. Building

on these efforts, the center identifies areas of improvement for road-related laws and regulations, and makes contribution to the long-term growth of road administration.

Performance & outlook

It has been six years since its establishment. The RPRC has exerted the utmost efforts to fulfill its mission as the key organization for road policy planning in Korea. For example, it hosted events for performance presentation of Korean road research institutes and enabled the research institutes to be more closely networked with each other, which led to better sharing and efficient usage of research outcome. The center has also been committed to increasing the recognition on domestic and overseas road policies by publishing Road Policy Brief and operating the homepage (www.rprc.or.kr).

The center will continue to offer all-out support for research in order to build up the road network planning system at a national level. As the critical research organization to lead creative road research, it is committed to making contribution to the efficient and sustainable development of national land.

Kim Ho-jeung (hjkim@krihs.re.kr)

Analysis of road policy and road plan

Identification of mid-to-long-term road policy paradigm Development of construction transportation and road policy tasks

Receiving opinions and policy advice from experts Keeping records of domestic and overseas road policies/plans and relevant implementation result Academic exchange with advanced countries and analysis of major policies

Feasibility study of investment projects Feasibility review of road projects Investment performance management for financial projects

Comprehensive review on private-invested Analysis of pending issues (

and suggestion of alternatives

Review and advisory on basic road improvement plans Discussion and advisory on the plans drafted by local municipalities Revision and creation of relevant guidelines, including establishment of investment priority methodology and review of road network system Establishment and renewal of basic data related to road plan Establishment of domestic and overseas road-related policy indicators

rovement areas for relevant laws, rcement decree including the Road Act Establishment of improvement directions for road-related institutions and mid-to-long term road administration Improvement of other road-related laws, regulations, and organizations Road Policy

Research Center

The cradle of comprehensive and future-oriented

road policy research

Figure 1: Major roles

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KRIHS-WB Joint Workshop on Metropolitan Strategic Planning for Green and Smart Growth

The Global Development Partnership Center of KRIHS held a Joint Workshop with the World Bank on July 24. Director Zoubida Alluoua and manager Sameh Naguib Wahba of Urban and Disaster Risk Management at the World Bank, economist Wang Hyung-guen, specialist Lee Sang-ju on urban issues, and consultant Dillip Kumar Bhanja on disaster prevention, officials from KRIHS as well as 20 people from Korea Railroad, Korea Cadastral Survey Corporation, Seoul Metropolitan Rapid Transit Corporation, Seoul Institute, Gyeonggi Research Institute, Incheon Development Institute, and Korea Institute of Construction Technology participated in the workshop.

The workshop started with the opening remarks by vice president Park Jae-gil and director Zoubida Alluoua. Sameh Naguib Wahba, principal expert on urban issues, introduced Global Lab and associate research fellow Wang Kwang-ik of KRIHS made a presentation on urban development for green growth. After that, research fellow Kim Tae-kyung from Gyeonggi Research Institute presented the current state of smart/green urban development in Gyeonggi-do and research fellow Koh Jun-ho made a presentation on the strategy on green transportation in Seoul for sustainable development.

In the discussion session, participants actively discussed the way to establish cooperative ties between the World Bank and domestic institutions and exchanged their views and thoughts. This

workshop is expected to lead to active knowledge sharing and cooperation in the field of smart and green urban development for sustainable development of metropolitan area.

Mega Event Planning International Forum

The Center for Urban Regeneration Policy of KRIHS held “Mega Event Planning International Forum”

jointly with School of Planning, Design and Construction at Michigan State University and Regional Development Department at Chonnam National University in Gwangju City from July 31 to August 2. The 3-day event was sponsored by Gwangju Metropolitan City, Ministry of Land, Infrastructure and Transport, and Network for Social Enterprise in Jeollanam-do. About 150 people including public officials from the US, Italy, Switzerland, Spain and Brazil, experts and officials from central government, local governments, civic groups and academia participated in the forum.

This forum was organized to discuss strategy on regional development by attracting mega events, participation of local community and sustainable regional development after event as Gwangju Metropolitan City has a chance to hold a series of mega events including 2015 Gwangju Summer Universiade and Gwangju 2019 18th FINA World Championships.

On the first day, visit to Suncheon Bay Garden EXPO 2013 and EXPO 2012 Yeosu Korea was scheduled followed by welcome dinner. On the second day, visit to 2015 Gwangju Summer

G G LOBAL PARTNERSHIP

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Universiade site and Hub City of Asian Culture was made. Also, on the same day, speech and presentation on the Human Side of Mega Events was given and participants discussed the subject. This was an opportunity to think about the benefits by looking mega events from the perspective of human side through eight themes of Investing in Mega Events, Capacity Building, Skill Development, Infrastructure Management, Tourism, NGOs and Volunteering, Education Connections and Sports Connections.

On the last day, presentations were made by domestic and international participants under the theme of Mega Event and Economic Development, Mega Event and Urban Planning and Mega Event and Regional Development.

This forum was the venue for discussion and information exchange on mega events in the field of urban planning and regional development. It is expected that active discussion on sustainable effects of mega events and quality of life improvement of people in host cities continues in the future.

International Seminar on the Activity-based Simulation Models for Promotion of

Transportation Policy Effectiveness

The Infrastructure Research Division of KRIHS held an international seminar on August 6. This seminar was an opportunity to gather opinions of experts on the direction of basic research regarding the development and application of activity-based simulation models and policy contribution as part of the task “ways to develop and apply activity-based simulation models to improve the effectiveness of transportation policy.” The seminar was jointly held with Southern California Association of Governments

(SCAG) with which partnership was established to discuss the way of cooperation in the future policy research and methodology development.

Activity-based model makes it possible to measure the impact of policy delicately as the model considers reality upon decision making compared to other 4-step model for transportation demand forecast. With the activity-based model, it is possible to establish integrated city model based on agent by combining the model with long-term demographic change model, land use change model, serial transportation simulation and environment impact model. Studies on activity-based simulation model have been conducted for more than 20 years and many Metropolitan Planning Organizations (MPO) are using the activity-based model in parallel with 4-step model to evaluate policy and alternative plan but regional model is under development for future use.

Dr. Choi Sung-yeon from SCAG, which is the largest MPO that uses activity-based model in the United States, professor Goulias of University of California Santa Barbara which developed SimAGENT (Simulation of Activity, Greenhouse gas Emissions and Travel) that is the activity-based model of SCAG, professor Bellemans of Hasselt University that developed FEATHERS (Forecasting Evolutionary Activity-Travel of Households and their Environmental Repercussions) as activity-based policy evaluation model in Europe, Cho Sung-jin in doctor’s program and Dr. Yoon Seo-yeon of KRIHS made a presentation followed by question and answer session at the end of each presentation. As UCSB and Hasselt University are in cooperative relationship regarding the execution of the task, the seminar was an opportunity for researchers to share their ideas and discuss future plans.

Training Program on National Land and Regional Development Policy

The Global Development Partnership Center of KRIHS provided a training program on national land and regional development policy for three Latin American countries which was commissioned by Korea International Cooperation Agency as part of multi-year training program (3 years, 2013-2015) for 15 days from July 6 to 20, 2013 at KRIHS.

Fourteen high-level officials from Colombia, Ecuador and Peru participated in the training

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program. The training program is composed of lecture, discussion, site visit, field trip, advisor’s meeting and final workshop.

Major contents of the lecture on national land and urban development planning include implication of Korea’s experience and policy of national land development, development of Korea’s policy on land, urbanization and urban development, housing welfare for the low-income bracket, transportation and infrastructure development, green city and example, smart city and example and geographical information system. The training program was an opportunity for the trainees to improve their understanding on national land and urban development in Korea. In addition, trainees and instructors could compare cases from different countries through discussion after the lecture.

They had a chance to visit the Ministry of Land, Infrastructure and Transport, Sejong City Public Information Center, Busan Port Authority, Samsung Heavy Industries ship yard in Geoje, and historic places in Gyeongju. Trainees could learn major characteristics of Korea’s national land development and experience Korean culture.

In addition, advisor’s meeting was arranged with experts on issues that trainees were interested in two times. In the final workshop, trainees made a presentation on their country’s major issues and plans to resolve them. In addition, the opinion of a moderator on the presentation was expressed.

Trainees who participated in the training program commissioned by KOICA could understand Korea’s national land and urban development and thought about the urban development project where they work together in the future with Korea. The participants were highly satisfied with the overall program and said they want to strengthen partnership with KRIHS. It is expected that

cooperation between KRIHS and relevant authority of participants will expand further.

Training Program for High-Level Officials:

Knowledge Sharing of Korea’s Experiences on Infrastructure Development

The Global Development Partnership Center of KRIHS provided a training program for high-level officials from developing countries from September 9 to 13, 2013 jointly with the Korea Transport Institute. High-level officials related to transportation and infrastructure from 22 countries participated in the program.

The training program was intended to support Korean construction companies to enter overseas market in the long term by building a network and helping high-level officials in the position of decision-making on policies to experience Korea’s advanced infrastructure.

The 5-day training program started with congratulatory remarks by Assistant Minister Ahn Si-kwon of the Ministry of Land, Infrastructure and Transport and keynote speech on International Urban Development Collaboration by Prof. Kang Myung-gu of University of Seoul.

Session 1: Field trip to Cheonggyecheon Stream and LH Cooperation and presentation on housing, new city, urban transportation and road Session 2: Field trip to Incheon International Airport, Incheon Songdo International City and presentation on water resources, industrial complex and railroad and airport

Session 3: Field trip to Seoul Metro Line 9 and presentation on status of infrastructure development of participants’ countries

Session 4: Field trip to Jeju Smart Grid Test- Bed and closing ceremony

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The training program was expected to boost international exchanges and entry into overseas markets by strengthening international status of Korea’s infrastructure industry and establishing a global network with developing countries.

KRIHS-INRS Urban Knowledge Sharing Seminar

On August 22, the Global Development Partnership Center (GDPC) of KRIHS held a seminar on urban planning experience of Korea and Canada (Montreal) with 8 researchers and students in master’s or doctor’s course on population and urban planning from INRS (Institut national de la recherche scientifique/National Institute for Scientific Research), which is under University of Quebec, Canada. INRS is a research institute, which has the largest research fund per researcher in Canada with 40 years of history.

The seminar starts with the introduction of KRIHS and GDPC followed by presentation on Canada’s population, economy and development of natural environment by students from the University of Quebec. In addition, associate research fellow Wang Kwang-ik and senior research fellow Lee Sang-gun of KRIHS made a presentation on green cities in Korea and smart cities in Korea respectively. After open discussion, participarts from INRS visited the Smart City Center located in Anyang to look around the state of control center which integrates transportation, crime and countermeasures on disaster.

This seminar was meaningful in that it provided an opportunity to share the experience of Korea’s urban planning with a top-notch research institute in Canada and strengthened a network on urban planning between Korea and Canada. The seminar also served as an opportunity to discover various agenda for bilateral cooperation.

Advice on the Development of Integrated GIS Platform Development for Greater Colombo City in Sri Lanka

Research fellow Jo Jin-cheol of the Global Development Partnership Center (GDPC) of KRIHS visited Sri Lanka to conduct a survey to execute

“KOICA-TAF LEG (local economy government) project for eastern province of Sri Lanka” from August 19 to 30. Research fellow Jo Jin-cheol had a meeting with officials from KOICA and TAF to discuss the project and provided advice on the development of GIS platform in 4 eastern provinces in Sri Lanka including Trincomalee, Batticaloa, Kalmunai, and Akkaraipattu.

Dr. Jo had a meeting with officials in charge of Trincomalee development, relevant ministers in charge of eastern province, and executives from chamber of commerce to provide advice on the development of heavy and chemical industries with the development of logistics industry through port development and highway construction when he visited industrial complexes of each province, port and China Bay.

He emphasized the establishment of land information system in Batticaloa as more land is required for the construction of overpass bridge and recommended planting trees project to prevent natural disasters in Kalmunai and Akkaraopattu as well as securing tax income by adopting GIS system. In addition, he confirmed the willingness of minister in charge of eastern province to open a province-specific research institute and agreed to cooperate with the minister for the opening of the research institute.

This business trip was an opportunity to share views with local officials and visit major urban development sites in Sri Lanka. They also agreed to work together more closely in the future.

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The 2ndKorea Forum: Korea’s Strategy and Task on Cooperaton with China

The Center for the Korean Peninsula & Northeast Asian Studies of KRIHS held the 2ndKorea Forum on July 2. Professor Oh Seung-ryul of Hankuk University of Foreign Studies made a presentation under the theme of Korea’s strategy and task on cooperation with China and experts on the Korean peninsula and Northeast Asia discussed the subject.

Professor Oh dealt with various subjects including the current economic situation in China, structural problem of Chinese economy, problems of international economy, economic prospects of China for the next 5 years, prospects on major industrial policies of China, opportunity and risk for the Korean economy and relationship between China and Korean Peninsula in his presentation. After the presentation, heated discussion was underway under the theme of the possibility of hard-landing of the Chinese economy, appropriateness of the term “G2”

and Korea’s foreign policy regarding China.

During the presentation and discussion, participants implicitly agreed that the structural problem of the Chinese economy, China’s economic and industrial policy and China’s strategy on the Korean peninsula should be identified, preparation should be made against risk factors to the Korean economy and strategies and tasks regarding the cooperation with China should be established taking the full advantage of opportunity for the Korean economy.

An interesting graph introduced in the presentation is shown above. The graph shows the trend of trade between China and DPRK and between China and inter-Korean trade. What should be noted here is that the gap between China-DPRK trade and inter- Korean trade grew significantly after DPRK’s second nuclear test in 2009. This indicates growing dependance of DPRK economy on China.

Korea Forum which has been held on a quarterly basis by the Center for the Korean Peninsula &

Northeast Asian Studies contributes to the identification of the latest trend through presentation and discussion among experts on the Korean Peninsula and Northeast Asia and expansion of intellectual exchange in various fields from both quantitative and qualitative terms.

Asia Geospatial Forum 2013

The Geospatial Information Research Division of KRIHS participated in Asia Geospatial Forum 2013 held in Kuala Lumpur, Malaysia from September 24 to 26. Asia Geospatial Forum is a major conference on geospatial information technology and application program in the Asia Pacific region, for which countries take turn to hold the forum every year.

The purpose of participation is to hold a session for spatial information policy and spatial information infrastructure and exhibit Korea’s spatial information technology as well as to advertise Smart Geospatial EXPO to be held in November.

N N EWS & ANNOUNCEMENTS

1993

Total China-DPRK Trade Total Inter-Korean Trade

$ Million

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1,000

2,000 3,000 4,000 5,000 6,000

China-DPRK Trade vs. Inter-Korean Trade (1993-2011)

Source: S. A. Snyder, North Korea’s Growing Trade Dependency on China, Asia Unbound, CFR, June 2012, based on KITA/MOU data

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“Geospatial Information Policy & SDI (Spatial Data Infrastructure)” session was planned and presentation was made for each subject. Associate research fellow Gang Hye-kyung took the role of moderator and Head Choi Byung-nam made a presentation on “Methodology to Develop Spatial Information Policy”. Associate research fellow Lee Jae-yong made a presentation on “Korea’s Policy on Nurturing Spatial Information Human Resources”

and “Urban Regeneration and U-City Policy Using Spatial Information”. Director Kim Dae-jong also gave a presentation titled “Prediction of Change in Land Use through Big Data”. In addition, assistant research fellow Sung Hye-jung made a presentation under the theme of “KOPSS, Technology for National Land Spatial Planning” in the Geospatial Innovation session.

During the conference, science-based national land planning and service was advertised by exhibiting Korea Planning Support Systems (KOPSS) and Land Use Regulation Information System (LURIS) as excellent examples of Korea’s spatial information system. Through the forum, they had a chance to network with other international geospatial information specialists and promote KRIHS.

Ministry of Land, Infrastructure and Transportation as well as spatial information companies participated in the event to present and exhibit excellent cases in Korea and advertised Smart Geospatial EXPO 2013.

Global Development Partnership Forum

The Global Development Partnership Forum has been held every month since September, 2011. Its objective is to establish a network among forum members, search for ways to advance into overseas development market and collaborate with other public and private organizations.

The 22nd Forum: International Development Partnership Projects

The Global Development Partnership Center (GDPC) of KRIHS held the 22nd Global Development Partnership Forum at Allegro Hall located at Intercontinental COEX on July 3. Dr.

Choi Seong-su gave a lecture on the current state of construction business of the World Bank as the first speaker of the forum.

Dr. Choi took the examples of Southwest Asia to explain the current status of construction business of the World Bank. He also introduced urban development plans and projects that promote policy development. The lecture was a good opportunity to obtain information related to the World Bank, which can be hardly obtained by private construction companies in Korea.

Second lecture was given by Head Ji Gwang-chul International Development Policy Team of Ministry of Strategy and Finance. He introduced Korea’s development policy related to international development partnership projects.

He explained that Knowledge Sharing Program (KSP) is underway from the perspective of sharing Korea’s experience and knowledge on economic development, supporting socioeconomic development of partner country and boosting economic cooperation with partner country. He stressed that knowledge is a key to economic development upon setting the direction of development partnership and international organizations execute knowledge sharing and management program under this recognition.

Sakong Ho-sang, director of the GDPC introduced a plan for overseas workshop related to global development partnership. Depending on the survey results, overseas workshop will be arranged in Vietnam or Sri Lanka.

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The 23rdForum: ODA and Public Private Partnership

The Global Development Partnership Center of KRIHS held the 23rd Global Development Partnership Forum at Intercontinental COEX on August 7. President Kim Young-mok of KOICA made a presentation on the way for Korean companies to go overseas market through ODA.

President Kim stressed the importance of ODA before discussing ways to enter overseas market. He said that ODA is very meaningful to establish partnership with stable markets and maintain a strong position in the global market as Korea’s dependence on external market is growing stronger.

He explained policy focus of KOICA that includes the development of global talent and expansion of ODA to develop global new villages and presented the vision of KOICA as a professional organization of ODA. The president also asked private companies to execute overseas projects with clear concept of public private partnership project. He concluded his presentation by presenting the vision of smart KOICA with smart platform.

Director Sakong Ho-sang and deputy director Jo Jin-cheol of the GDPC briefly presented the center projects scheduled in the second half of the year and forum members showed their interest in the projects including a Sri-Lanka local workshop which will be implemented in the fourth quarter.

The 24th Forum: Private Investment and Overseas New City Development

The Global Development Partnership Center of KRIHS held the 24thGlobal Development Partnership Forum at Intercontinental COEX on September 4.

Director Yoon Ha-jung of Center for Construction Economy delivered a presentation on “policy direction on private investment under the new government”. He dealt with the recent change in construction environment and the new government’s policy direction on private investment to overcome the current situation of private-invested projects. He stressed the need for solving existing problems to boost private-invested projects. He also said that SOC has been the infrastructure of national development so policy direction should be maintained continuously.

Executive Director Shin Wan-chul of Hanhwa Engineering and Construction Corporation made a presentation under the theme of exemplary case of creative economy related to overseas new city development focusing on the development of new city with 100,000 houses in Bismayah, Iraq. He emphasized that the construction of new city like this will serve as a stepping stone to enter other foreign markets. He also said that Bismayah new city construction project is expected to secure foreign currency and improve the status of Korean companies and Korea.

The 2ndRegional Field Trip Event

KRIHS has implemented the 2ndregional field trip event from July 19 to October 17. The event is targeting elementary school students nationwide for the purpose of increasing the awareness of the national territory value and boosting the spirit of love for nation. This event is an important project for education on national territory to develop future potential and healthy growth of students by providing an opportunity to visit national territory.

The event jointly organized by the Hankook Children’s Daily and KRIHS provided an

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