Budget Toolkit: South Korea

Why is understanding donor budgets important for advocates?

The OECD collects and publishes granular data on DAC donors' ODA. While this data, featured in our Donor Tracker Profiles, provides the most comprehensive view of donor government ODA spending and is crucial for accountability and transparency, it provides only a past perspective. The time taken to collect and verify the information means that preliminary data are published about 3 months after the calendar year ends, and the complete and detailed data on resource flows take more than 12 months to be published.

To get a more up-to-date view on donors’ future plans and to influence ODA budgetary decisions, advocates need to look to donor budgets and their surrounding decision-making processes for insight. The majority of donors publish draft budgets and conduct negotiations in the last quarter of the calendar year before finalizing the next year’s budget. Through this series of Donor Budget Toolkits, the Donor Tracker aims to support advocates in better understanding donor budget timelines, how they translate to ODA spending, and how decision-making processes work, so they can best advocate for development cooperation in donor budgets negotiations. The series will be released over the upcoming months, in line with ongoing budget negotiations in markets tracked by the Donor Tracker.

ODA Composition

How much ODA does South Korea contribute?

South Korea was the 15^th-largest donor country on the OECD DAC in 2021. This corresponds to 0.16% of its GNI, making South Korea the 26^th-largest DAC donor in relative terms.

What are the main sources of South Korea's ODA?

Stakeholders

Who decides on the development budget?

South Korea has a democratic republic with a governmental structure that includes three primary branches: the executive, legislative, and judicial branches.

The Executive Branch:

The President: South Korea's President is the head of state and government and holds executive authority. The President is responsible for proposing the national budget to the National Assembly.

The Legislative Branch:

The National Assembly: South Korea's legislative branch is a unicameral legislature, consisting of a single house, the National Assembly. The budget process in South Korea involves the government submitting a detailed budget proposal to the National Assembly for review and approval. The process usually begins with the President's submission of the proposed budget.

The National Assembly plays a central role in the budget process. Members of the National Assembly review and debate the budget proposal, making amendments as needed. The budget must gain approval in the National Assembly to become law, and it typically requires a majority vote.

The Judicial Branch:

Does not directly participate in the budget process.

Key Stakeholders

ODA Timelines

When and how are decisions on South Korea's budget made?

ODA levels are set by MOEF between January and April; specific allocations are made between July and October.

Timeline

Current Budget

What does the current development budget say about South Korea's ODA?

South Korea's parliament granted approval on December 21, 2023, for a 2024 budget of KRW656.6 trillion (US$503.5 billion), an incremental increase from 2023. The budget marks the smallest year-on-year increase in two decades, reflecting a shift in away from expansionary spending undertaken during the coronavirus pandemic.

Despite the small increase in the overall budget, South Korea has pledged to double its ODA to US$39.9 million by 2027. The record-breaking 2024 ODA budget has put the country ahead of schedule.

Next Steps

What are the next steps?

On February 29, 2024, the South Korean government confirmed its 2024 ODA budget at KRW6.3 trillion (US$4.85 billion) at the 48^th CIDC, presided by South Korean Prime Minister Han Duck-soo, who confirmed the budget and decided 2024 ODA Annual Implementation Plan. The 2024 ODA budget is the largest on record and indicates a 31.1% increase (KRW1.5 trillion, US$1.2 billion) over 2023.

South Korea is slated to implement 1,976 projects through 46 organizations in 2024. 17.5% of the budget is set for humanitarian assistance, 15.1% for transportation, and 9% for health. South Korea also expanded humanitarian assistance including overseas emergency relief, food assistance, and contributions to health crises.