Re-approaching the Role of Private Sectors in International Development Cooperation in Korea

Purpose: This study examines the roles assigned to and expected of private companies in Korea’s development cooperation. By identifying the gap between the roles given and those desired, it seeks to propose a redefinition of private sector roles to ensure their practical and sustainable participation. Originality: Private Sector Engagement (PSE) is pivotal in international development cooperation, particularly in advancing Sustainable Development Goals (SDGs). In the Republic of Korea, despite growing efforts to integrate private sector participation, engagement remains limited, highlighting the need to redefine roles and restructure participation frameworks that reflect the capacities and motivations of private companies. Methodology: In-depth interviews were conducted with both large corporations and small and medium-sized enterprises (SMEs). A role-based analytical framework was employed to categorize private sector roles as beneficiaries, implementers, reformers, resource providers, and participants, and to compare the roles assigned by public institutions with those expected by the companies. Result: Large corporations aim to shift from being resource providers to reformers and participants, seeking more strategic and performance-oriented collaboration. In contrast, SMEs expect to act as beneficiaries and implementers but face institutional constraints and limited recognition. To align corporate capacities with development goals, it is essential to expand the role of participants and enhance mutual collaboration. Conclusions and Implication: Although the private sector is ready to play a more active role, the current cooperation structure with the government does not adequately reflect this. A role-based participation strategy and institutional reforms are necessary to create an enabling environment that enables the private sector to contribute actively as a key player in international development cooperation.