South Korea to offer $52 bln for Ukraine’s reconstruction projects

South Korea will offer assistance worth $52 billion to Ukraine's reconstruction projects, Yonhap reported on July 14, citing South Korea's presidential office.

What is the problem?

After the end of the war, Ukrainians will need to act quickly and effectively to rebuild their communities, culture, environment, and economies.

As it will take decades for Ukraine to rebuild everything on its own, various allied countries, including South Korea, will assist.

What is the solution?

The Ukrainian government has requested the involvement of South Korean companies in around 5,000 projects, estimated at $20 billion, said presidential economic secretary Choi Sang-mok.

Seoul will extend support to the Ukrainian private sector worth $32 billion.

How does it work?

"In May, Ukraine submitted a request through the intergovernmental cooperation channel for South Korean companies to participate in approximately 5,000 construction projects worth $20 billion," said Choi.

The state's government will start assessing construction sites for modular homes to quickly provide housing for people, as well as schools and hospitals.

Choi also added that the inspection of these sites would be carried out at the expense of official development assistance.

The South Korean government also plans to support Ukraine by providing technical assistance to restore water infrastructure. It plans to supplement the humanitarian aid that has already been provided after the destruction of the Kakhovka dam.

Choi noted that specialized support would be extended to private-sector-led reconstruction projects, which are currently estimated at about $32 billion.

The projects cover a variety of fields, including nuclear power plants with small modular reactors, airport reconstruction, construction equipment, railroad transportation, and information technology.

Even if the conflict continues and reconstruction is in the early stages, we will prepare for our role in reconstruction projects as diligently as the Ukrainian government wishes, Choi concluded.

During a visit to Poland that took off on July 13, South Korea's President Yoon Suk Yeol said that Seoul would cooperate with Warsaw on the reconstruction projects.

According to the World Bank's assessment from March, Ukraine will need at least $411 billion for recovery and reconstruction. This figure equals 2.6 times Ukraine's projected gross domestic product in 2022.

The Asian country has previously provided Ukraine with humanitarian aid and promised additional assistance of $230 million. At least publicly, Seoul has been hesitant to provide military assistance despite Kyiv's appeals.