Korea signs agreement on post-war reconstruction of Ukraine

Ukraine President Volodymyr Zelenskyy, left, shakes hands with Minister of Land, Infrastructure and Transport Won Hee-ryong in Kyiv, Wednesday. Courtesy of Ministry of Land, Infrastructure and Transport

Land minister, businesspeople visit Kyiv for 1st time

By Ko Dong-hwan

Korea's state-run companies and private firms are ready to play a key role in rebuilding Ukraine once Russia's invasion ends. Minister of Land, Infrastructure and Transport Won Hee-ryong and Ukraine President Volodymyr Zelenskyy met Wednesday and signed an agreement on the eventual reconstruction projects, according to ministry officials, Friday.

The project aims to rebuild the war-torn country's public transport system, implement smart city technologies, modernize its airport, improve sewage systems, restore dams and advance railway services after the war, which began in February 2022, comes to an end. Korea also agreed to loan Ukraine $2.3 billion over the long term.

Minister Won led a Korean delegation to Kyiv, Wednesday, for a two-day trip. It was the first time representatives of the Korean government and the country's state-run and private firms paid a state visit to Ukraine as “One Team Korea,” according to the ministry.

The delegation comprised of government officials from the land ministry and the Ministry of Oceans and Fisheries, as well as 18 state-run and private firms specializing in housing, public water supply, airports, environmental technology, construction, vehicles, AI, telecommunication and logistics.

Korean Minister of Land, Infrastructure and Transport Won Hee-ryong, left, speaks during a summit between a Korean delegation of ministries, state and private firms and Ukraine government officials in Kyiv, Wednesday. Courtesy of Ministry of Land, Infrastructure and Transport

At the Ukraine-Korea Reconstruction Cooperation Forum 2023, held in Kyiv on Thursday, the Korea Overseas Infrastructure and Urban Development Corporation (KIND) said it will rebuild the destroyed public transit system in the capital city and its surrounding province ― by implementing a new low-carbon public transportation system that runs with AI technology.

K-water, Korea's state-run public water system management company, and KIND said that they will jointly transform Uman in Cherkasy Province into a smart city by introducing new mobility, public disaster response systems and renewable energy-based power generation. K-water also said it will restore Kakhovka Dam and a hydroelectric power station that was seized and destroyed by the Russian military.

The Korea Airports Corp. said it will modernize Boryspil International Airport, Ukraine's largest airport, by improving operating systems, security and tarmac management.

The Korea Environmental Industry and Technology Institute (KEITI) said it will rebuild wastewater treatment facilities in Bucha.

Korea National Railway said it will advance railway service along the existing tracks servicing the Ukraine-Poland border region in western Ukraine.

Korean Minister of Land, Infrastructure and Transport Won Hee-ryong speaks during the Ukraine-Korea Reconstruction Cooperation Forum 2023 in Kyiv, Thursday. Courtesy of Ministry of Land, Infrastructure and Transport

The forum also saw Korea's major private firms proposing support in sectors such as smart cities, digital twins, dams, power plants, modular housing and construction machines. Twelve private firms have joined the project including Samsung C&T, Hyundai E&C, Hyundai Rotem, Naver, Yooshin, Hanwha Solution, KT, CJ Logistics and POSCO International. Hyundai Construction Equipment signed a memorandum of understanding (MOU) with Mykolaiv Province to donate $1.5 million worth of construction machines and provide operation training.

Won and Zelenskyy oversaw the signing of an agreement whereby Korea will loan Ukraine economic development cooperation funds (EDCFs). The Korean government said the fund will finance about $2.3 billion over the long term at a low interest rate.

The agreement was signed between Korea's Ambassador to Ukraine Kim Hyung-tae and Ukrainian First Vice Prime Minister Yulia Svyrydenko.

The Korean delegation also met Ukraine's Prime Minister Denys Shmyhal, Minister of Infrastructure Oleksandr Kubrakov and Minister of Energy German Galushchenko to confirm bilateral cooperation.

So far, Korean companies have shown interest in providing on-site support to Ukraine's reconstruction but haven't been given opportunities to do so, according to Won. He said that with urgency from the Ukrainian government, Korean companies will begin planning as soon as possible for the rebuilding process.