The Mekong River, flowing through Yunnan Province, Myanmar, Laos, Thailand, Cambodia and Vietnam, is the largest river in Southeast Asia and those countries' lifeline as well. The area, since the end of 1980s, has undergone rapid economic growth due to the conversion to a market-oriented economy system and a policy of continuous economic development. The tremendous economic growth potential of this area stems from its abundant labor force and natural resources.

Activities to develop the Mekong River Basin resumed in the first half of the 1990s. Much of the support for the Mekong River Basin Development Plan has been undertaken under the auspices of the ADB, MRC, and ESCAP. The Mekong Development Project focuses on several key sectors: traffic, energy, communications, trade and investment. These SOC construction projects, including the TAR (Trans-Asia Railway) Project, make for an extremely attractive market. However, the Mekong River Basin Development suffered a setback following the financial crisis in East Asia that began in July 1997.

The development of various infrastructural elements, such as roads and energy, are urgently required for continued economic growth and the inducement of foreign capital for the Basin development. Furthermore, as the economies in the region have begun to recover from the financial crisis, it is expected that the Basin development activities will resume. With all the nations in the region having joined ASEAN, except for China, the region has become even more important and is expected to experience accelerated economic development backed by repercussions of economic growth. In particular, if the GMS Fund, which was discussed at a regional meeting in Manila in September 1998, is established, the development of the Mekong River Basin Development may be expedited.

There will certainly be renewed interest in investing in the region by Japan, Australia and Europe as the Basin is increasingly seen as being an untapped but potentially lucrative new market. The existing ASEAN members will also continue their active participation in the Basin Development through the 'One Southeast Asia (ASEAN 10)' banner.
Korea had a great deal of interest in the Basin Development even prior to the ASEM summit in March 1996, and Korean corporations had been active in road construction and hydraulic power projects, and government aid, which had been inadequate up to that point, has been expanded and facilitated since the summit. While Korea remains keenly interested in participating in the development of the area, the lingering effects of its economic crisis prevent it from immediate participation in the Basin Development. Taking into account, however, the fact that the Basin and Southeast Asia are Korea's largest markets and possess great potential for future growth, it is essential that Korea's active participation in the region is viewed in a mid and long-term context.

Executive Summary

Ⅰ. Introduction

Ⅱ. The present situation and prospects for the development of the Mekong River
Basin
1. The major contents and promotional status of the Mekong River Basin
Development
2. The economic crisis in East Asia and its effects on the prospects of
development of the Basin

Ⅲ. The present situation of economic cooperation between Korea and the
countries in the Basin, and Korea's participatory realities
1. The present situation of economic cooperation with the countries in the
Basin
2. The participatory realities in the River Basin Development

Ⅳ. The Prospects for Korean participation in the Mekong River Basin Development
1. The growth potentialities of the River Basin and the necessity for Korea's
participation
2. Promising fields and prospects for Korea's participation

Ⅴ. Summary and Conclusion

References

Appendix Ⅰ. Subregional Projects in the Greater MekongSubregion
Appendix Tables
Appendix Figures

Korean Abstract