Business news from Ukraine

The Republic of Korea intends to participate in Ukraine’s reconstruction, as six pilot projects were unveiled during the Ukrainian-Korean Business Forum held in Kyiv on Thursday.

“Our partners’ support for our economy is very important. Investments in the renewal of Ukraine will create competitive jobs and bring Ukrainians back home. Our ministry wants to hear the opinion of business about the recovery process, business needs and problems. We are ready to work together to find solutions that will become a magnet for investment. Korean experience in transportation and technology is important to us. The Republic of Korea was able to become the undisputed leader in the industry. We present pilot projects that take this experience into account. We believe that together we will rebuild Ukraine for the prosperity of our peoples,” said Oleksandr Kubrakov, Minister of Communities, Territories and Infrastructure Development, during the event.

The Korean delegation, headed by Minister of Land Management, Infrastructure and Transport of the Republic of Korea Won Hee-ryong, included representatives of government and business, including KIND, K-water, NAVER Cloud, KEITI, Yooshin Engineering, Hyundai Motor Group, HD Hyundai Construction Equipment, Samsung C&T, Posco International Corporation and other Korean associations and companies. The main sectors of focus are urban development, water treatment, reconstruction and development of transport infrastructure.

“We are already talking about implementing the first pilot projects for the restoration of Ukraine. By working on them, we hope that, based on Korea’s experience in post-war reconstruction, we will be able to help rebuild Ukraine and do it as soon as possible,” Hee-Ryong said.

According to him, six pilot projects were selected during a series of 13 bilateral video conferences.

The flagship project is a transportation master plan for the Kyiv region. It is planned to create a basic transport model, based on which to analyze problematic issues and conduct a feasibility study of the main project proposals. The implementation of this project will start in September.

According to the Minister, at the end of August, a “very unexpected” project was officially launched – the Uman Smart City Master Plan, which is expected to be implemented in 240 days. K-water was selected as the project’s executor. All segments and services in Uman will be launched: economy, security, mobility, environment, renewable energy, tourism, residence complexes, etc.

A large-scale project is a plan to support Ukrainian airports, focusing on nine regional airports, plus Boryspil and Lviv. Reconstruction/renovation options are being developed for the short and long term, for wartime and peacetime. After analyzing the data for each airport, we will assess the risks and possible solutions.

The wastewater treatment project in Bucha is extremely important for the development of the capital region.

“Korea has stricter requirements for sewage, and we have to comply with the standards. The project provides for real-time monitoring,” said Sin Hyun Choi, Director of the Overseas Construction Policy Department of the Ministry of Land Management, Infrastructure and Transport of the Republic of Korea.

The project in Bucha will start next year.

“I hope that the sewage treatment plant project we will implement in Bucha will give an impetus to the development of the entire northwestern region. Unfortunately, during the years of independence, no such project has been implemented in Ukraine that would meet modern world standards,” Bucha Mayor Anatolii Fedoruk commented on the implementation of the future project to Interfax-Ukraine.

According to him, this project can even cover “part of the Zhytomyr region.”

K-water has signed a memorandum of understanding that provides for technical assistance in the reconstruction of the Kakhovka dam; during the reconstruction phase, the company will provide technical support and possibly act as a sponsor.

The sixth project selected as a pilot project involves the renovation of railways, including the launch of the Kyiv-Poland high-speed train service.

“Korea has experience and resources. At this stage of planning, we need to see the options (for each of the pilot projects), evaluate their effectiveness, and only then involve companies in the implementation, choose options for participation, including concessions and public-private partnerships,” said Sin Hyun-cheol.

As reported, South Korean President Yun-Sook Yel promised to provide Ukraine with an additional $2.3 billion during the G20 summit in New Delhi to help the country restore peace and recover from the war with Russia. Of this amount, $300 million will come in 2024 in the form of humanitarian aid, and the remaining $2 billion in the form of low-interest loans through the Economic Development and Cooperation Fund (EDCF) starting in 2025.

“The budget of the first project is now known. It will cost about $800 thousand to create a master plan for the development of transport in Kyiv region. For five other projects, the budget for the development stage is currently being discussed,” Won Hee-ryong, Minister of Land Management, Infrastructure and Transport of the Republic of Korea, told the agency.

He added that it will be budget money, but “not necessarily from the $2.3 billion.”

During the business forum, a number of memorandums were signed, including cooperation between KIND (Korea Overseas Infrastructure and Urban Development Corporation) and the State Agency for Reconstruction and Development and Oschadbank, HD Hyundai Construction Equipment and Mykolaiv Regional State Administration and KBU (on the provision of construction equipment and educational cooperation).

Minister Hee-Ryong emphasized that the Republic of Korea views Ukraine as a long-term partner.

“We want to be a partner of Ukraine in 50 and 100 years,” the Minister said.