The Overseas Expansion Path of Nong-eochon Gongsa Widens

Korea Rural Community Corporation conducted an interview with Ethiopian Central Broadcasting (ETV) last November regarding the overseas technology engineering project (dam and irrigation canal construction project in Oromia Region, Ethiopia).

Passage of Amendment Expanding Business Scope

52nd Anniversary of Overseas Expansion This Year, Entry into Infrastructure Improvement Projects in Developing Countries

[Asia Economy Reporter Kim Min-young] The path for Korea Rural Community Corporation's (KRC) overseas expansion, which had been limited to overseas agricultural development and technical service projects, has now broadened. This is because the amendment to the "Korea Rural Community Corporation and Farmland Management Fund Act," which serves as the legal basis for KRC's participation in overseas projects, has passed the National Assembly. Taking this legal amendment as an opportunity, KRC plans to explore various overseas projects including rural development in developing countries.

According to KRC on the 14th, the partial amendment to the KRC Act passed the National Assembly on the 9th. The key feature of this amendment is the expansion of the types and scope of projects in which KRC can participate overseas. Until now, KRC had only participated in overseas agricultural development and technical service projects, but with this amendment, it is expected that KRC's overseas expansion in the agriculture and rural sectors will be revitalized. Although there has been demand for overseas expansion, joint overseas ventures with private companies were difficult due to licensing and other issues.

A KRC official stated, "Following this legal amendment, we plan to actively engage in rural development in developing countries by linking with private companies and others based on the experience and human networks accumulated through overseas projects."

Taking this amendment as an opportunity, KRC plans to discover projects with high private sector interest such as agro-industrial complex and distribution complex development projects, contaminated soil improvement projects, regional development projects, and rural water and groundwater resource development, and jointly promote them with the private sector. Additionally, KRC will also enter the field of safety inspections for overseas agricultural facilities. Last year, KRC proposed a safety inspection project for ODA projects that had been completed to the Ministry of Agriculture, Food and Rural Affairs.

KRC President Kim In-sik emphasized, "Since there is still time before the amended KRC Act is implemented, we will actively play a role in combining excellent private capital investment with KRC's technology and capital to lead private sector overseas expansion, thereby contributing not only to the development of overseas agriculture and rural areas but also to the expansion of domestic agro-industry's overseas advancement."

This year marks the 52nd anniversary since KRC ventured into overseas projects, and it is recognized for contributing to improving the quality of life in developing countries through overseas technical engineering projects. Until last year, KRC had expanded into 36 countries across Asia, Africa, and Latin America, carrying out 154 overseas technical engineering projects. These projects improved vulnerable agricultural infrastructure in developing countries, creating environments more conducive to farming.

A representative example is the construction of the Pasa Dam in Isabela Province, Philippines, in 2018. The dam was built to utilize abundant water resources in this area, which had suffered from water shortages affecting farming, resulting in a roughly 20% increase in agricultural productivity and stabilizing local incomes.

In addition, KRC is also conducting government policy projects such as ODA projects and loan projects overseas. A representative project involving KRC is the irrigation facility construction and repair project in Ethiopia. KRC improved irrigation facilities such as diversion weirs and pumping stations in Harari Province, Ethiopia, enabling farmers to use agricultural water stably even during dry seasons. As a result, the yield per unit area of corn and peanuts increased by 90% and 85%, respectively, and the local government requested a second follow-up project.

KRC also supports the overseas expansion of domestic private companies. From 2009 to last year, it provided 170.8 billion KRW in loans to 39 companies that expanded into 14 countries, including loans to excellent agrifood industry companies.

This content was produced with the assistance of AI translation services.