Aids, such as UN's Millenium Development Goals(MDGs), has been focused on Basic Human Needs(BHN); eradicate extreme poverty and hunger, achieve universal primary education, promote gender equality and empower women, reduce child mortality, improve maternal health, combat HIV/AIDS, malaria and other diseases, ensure environmental sustainability, develop a global partnership for development. Such efforts were successful in fund raising. However there are consensus that the ultimate goal of aids, i.e. poverty reduction through self-generating growth, is hard to be achieved because most of the previous aids were emphasizing social aspects.
Seoul Development Consensus which was adopted in 2010 G20 Summit, emphasized ‘development effectiveness’ beyond aid effectiveness. Catalytic role of aid in inducing investment and production activities of private sector rather than direct physical delivery of aid is regarded as more important in this consensus. It confirms that each country has its own specific situation and diverse development path need to be developed, rather than unilateral policy recommendations, such as Washington Consensus. Policy space of each country should be valued for successful development cooperations. Major principles of Paris Declaration, such as ownership and harmonization, also emphasize these aspects.
The most important area for the successful implementation of Seoul Development Consensus is Aid for Trade(AfT). OECD and WTO also regard AfT as the key area of aid. The scope of AfT has been broadened in recent years. It covers production capacity building and economic infrastructure. The AfT initiative is one of the most important development- related outcomes in recent years. AfT should help developing countries build supply-side capacity and trade-related infrastructure to help them benefit from trade agreements and, more broadly, to enhance the contribution of trade to development. The AfT initiative recognizes that current trade negotiations need to be complemented by stronger domestic policy and international cooperation. Least Developed Countries (LDCs) already receive assistance under the Integrated Framework for Trade Related Technical Assistance to LDCs, and this guide can be used to inform and update the Diagnostic Trade Integration Studies under the Integrated Framework.
This paper introduces the key issues of AfT and explains the current situations. Major reasons for failure of trade reform through AfT, such as inconsistent macroeconomic policies, wrong targeting, credibility, are also explained. Compatible policies(such as tax reforms) and complementary policies for AfT effectiveness are carefully examined. Based upon these considerations, analytic tools for diagnostics(such as Trade Needs Assessment of UNDP and Millenium Challenge Corporation) are explained in detail. In these assessment survey methods for interest group, benchmarking method, DTIS, and value chain analysis are used. Growth Diagnostics are generally used to determine policy priorities. All these methods are primarily used for the aid receiving LDCs’ development strategies. However, without clear understanding of LDCs situation, it is hard to expect aid effectiveness.
Trade has indirect effects on growth through productivity and investment, rather than direct effects. Policy Framework for Investment (PFI) is the representative international dialogue which regulates investment and aid. The contents of PFI are also explained in this paper.
Based on these this research provides the following policy recommendations; Korea needs to develop a specific strategy for AfT and make AfT as comparative advantage area in aid, Mini-CPS(Country Partnership Strategy) for selected countries, focused on trade and investment, needs to be made in near future.

G20 Seoul summit recognized the importance of development of poor countries to achieve sustainable and balanced growth of world economy and agreed on Seoul Development Consensus for Shared Growth. The G20 development consensus declared core principles for development cooperation and issued the action plans to deliver the development cooperation. As a country which played a key role in making Seoul Development Consensus, Korea needs to provide a leadership in carrying out the commitment of G20 countries to concrete outcomes. This study selects the four important topics in order to contribute to Korea's ODA policy reform. The topics consist of independent issues that have been rarely covered by previous studies. Although this study comprises independent topics, the topics are complementing each other and previous studies on ODA policy reform and suggest the policy recommendations for Korea to make contributions to the fulfillment of G20 development agenda.
First, this study tries to find the direction of Korea's ODA policy reform by looking into the basic philosophy of the G20 development consensus. From the six core principles on which the action plans of the consensus are based, this study characterizes G20 development agenda as growth-oriented and market-based development cooperation, high priority to local capability-building, market-friendly development strategy, recognition of no one-size-fits-all development, and policy ownership of developing countries. Among these characteristics, the growth-orientation differentiates the G20 development consensus from existing development agendas. In this respect, Korea as an exemplary country that reduced the poverty through growth has ample opportunities to contribute to the fulfillment of G20 development agenda. In this regard, this study suggests the direction of Korea's ODA policy reform as follows. First, Korea's ODA should focus more on what Korea can do best such as aid for trade, education, and industrial upgrading. Second, Korea should build the ODA framework which allows strategic and consistent implementation. Third, Korea's ODA should be closely associated with activities of private sectors. Fourth, Korea should pay more attention to the  policy coherence. Fifth, Korea should enhance its status in multilateral ODA by finding its proper role. Sixth, Korea should try harder to share the development knowledge based on the right understanding of Korea's experience.
Second, this study reviews the international development cooperation in Africa and provides the suggestions for Korea to improve ODA in Africa. Although many African countries received an enormous amount of foreign aid since the 1960s, they did achieve long-lasting economic development to reduce the poverty and enhance the quality of living. However, the recent decade showed that Africa too can grow fast to erase the image of poverty and disease. It implies that growth-oriented ODA emphasized by G20 development consensus could be applied to African countries and be expected to bring a considerable change in development. In this perspective, this study provides the brief history of development aid in Africa by exploring the patterns and effects of aid and attitude of Africa toward the aid. After introducing the on-going change in African economy with paying attention to China's aid, this study provides the overview of Korea's ODA in Africa. Finally, this study points out contributions and problems of Korea's ODA in Africa and suggests directions and tasks for Korea's ODA in assisting development in Africa
Third, this study investigates the issue of policy coherence for development(PCD) in Korea. PCD is needed to minimize the negative effects on development of policies of developed countries that may not be directly related with ODA but may indirectly affect the poverty reduction and sustainable development of developing countries. Korea has not paid much attention to this issue and many government agents do not recognize the issue itself. This study introduces the current discussion in OECD/DAC and benchmarks the EU's practice to induce the basic tasks Korea should undertake for PCD. First, Korea should introduce the obligation of PCD through enactment of domestic law and issue the policy documents for PCD covering all government agents. Second, Korea should  establish a government organization responsible for PCD which evaluates the various effects of policies on development. Third, PCD should be evaluated in trade and investment agreement with developing countries. The agreement should be made with explicit statement on PCD.
Fourth, this study reviews the role of foreign aid in the economic development of Korea, particularly in the 1950s. It analyzes the basic statistics which show the size and composition of foreign aid to Korea and evaluated the effects of aid in terms of both microeconoimc and macroecnomic perspectives. This historical review of Korea's experience as an aid recipient provides interesting implications for international development cooperation. First, Korean experience show the composition of aid changed over time as Korea was relieved from the severe shortage due to the Korean War. In the early periods after the war, Korea received ready-made consumer goods. Afterwards, Korea tried to receive raw materials or half-finished goods and then facilities and equipments for production. It shows the growth-oriented ODA should enforce the value-addition activity of local industries by providing input materials or half-finished goods. Second, the effect of aid on local industry should be evaluated carefully by considering the effect of competition from aided goods on locally produced goods. Third, Korean government tried to create the economic rents through allocation of goods received by aid. The economic rents were used as incentives to private sectors to achieve the policy goals. The success of this kind of policy depends on the government's ability in allocating the rents based on proper criteria consistent with economic development. Fourth, Korea's experience indicates that the aid could become a catalyst for policy and institutional
reforms in recipient countries, which could bring about more significant consequences in economic development.

 

Private Sector Development (PSD) has become a priority theme in development cooperation policies as well as practices of major donors over the past several decades. This paper explores the various approaches to PSD by major donors and draw implications for South Korea, as an emerging donor and the newest member of the OECD Development Assistance Committee. The growing consensus in development thinking and cooperation is that economic growth is a central element in achieving the Millennium Development Goals and poverty reduction, and that the private sector is the engine of economic growth. In this context, support for private sector development has increased to become a major item on the ODA budgets of major donor countries.
The paper begins by reviewing the change of development paradigm with specific focus on the role of the state and the private sector. After clarifying the concept and scope of PSD, it classifies three types of intervention in PSD; business environment reform, Making Markets Work for the Poor (MM4P) and Public-Private Partnership (PPP). Then it moves on to analyze and compare similarities and differences in the approaches of major PSD donors such as Germany, Sweden, the United Kingdom, the United States and Japan. Case studies of PSD in Mozambique and Cambodia are carried out. Subsequently, the current status of PSD-related assistance from South Korea is overviewed and analyzed in comparison with those of major donors.
The paper suggests that at the policy level, the South Korean Government must develop a PSD strategy, actively participate in PSD- related international fora such as the Donor Committee for Enterprise Development (DCED) and the Consultative Group to Assist the Poor (CGAP), and mainstream PSD as a cross-cutting issue in Country Partnership Strategies of its ODA priority countries. At the implementation level, the paper recommends that South Korea to strengthen its pro-poor focus, diversify aid modalities and channels and make improvements toward a results-based management approach in PSD.

As per the decision adopted at the COP 16 held in Cancun in 2010, parties decided to establish a Green Climate Fund (GCF) to be designated as an operating entity of the financial mechanism of the Convention. The GCF will support projects, programmes, policies and other activities to support developing countries vulnerable to the risks of climate change. The COP also decided that the Transitional Committee (TC) will guide the design of the GCF in four work streams on i) scope, guiding principles and cross‐cutting issues; ii) governance and institutional arrangements; iii) operational modalities and iv) monitoring and evaluation.
This paper focuses on the monitoring and evaluation (M&E) system of Green Climate Fund (GCF) among the four issues related to the design of the GCF illustrated above. M&E are essential management tools to organizations to provide greater accountability, a clear basis for decision‐making and lessons learned to guide future interventions. These issues are equally important for the operation and management of GCF. Korea has been participating as one of the 25 committee members of a developing country group and it was uniquely positioned to ‘bridge’ developed and developing countries as a non‐beneficiary of the fund. In this regards, this paper is to review the relevant issues and flows of discussions in GCF design and thus to provide useful policy insights for Korea to take a leading part in the future discussion.
This paper first introduces the historical background and progress of discussion of GCF and the Transitional Committee. It is followed by the core M&E components of GCF including establishment of M&E function, fiduciary standards, environmental and social safeguards, and participation of stakeholders. Then it consults other funds and organizations to find good experience and good systems of M&E. Overview of evaluation mechanisms in selected funds was conducted: the Global Environment Facility, the Global Fund and the Multilateral Fund for the implementation of the Montreal Protocol were recommended as best practices by the Transitional Committee. Among other aid agencies, the M&E policies and architectures of the World Bank and JICA (Japan International Cooperation Agency) were reviewed. Review of these institutions referred to M&E organizations, procedural matters, M&E guidelines, presentation of the evaluation reports and feedback mechanism as well as staffing and resources. As a result, comparison of the M&E procedures of these organizations…the similarities and differences were highlighted. This paper concludes by providing future prospects how the M&E system of GCF will look like.

Over the past decades, there has been an increasing interest on financing for development in the international development community. With the recent economic crisis and budget constraints facing major donors, traditional supplier of the development financing such as Official Development Assistance (ODA), the growing concerns is on the prospects of DAC (Development Assistance Committee) donors not being able to meet their current commitments. In the context, this paper attempts to review the evolution of international-level discussion on financing for development and draw implications for South Korea as the newest DAC member with limited experience of providing development assistance.
The paper examines the background of emergence of financing for development as a key development theme and reviews the change of international discussion focusing on the 2002 Monterrey International Conference on Financing for Development and the 2008 Follow-up Conference to Review the Implementation of the Monterrey Consensus, in Doha. Subsequently, it moves on to highlight the trends and current status of various forms of development financing such as ODA, Foreign Direct Investment, remittances and debt relief. Then it analyzes three main thematic area of domestic resource mobilization through taxation, Aid for Trade (AfT) and Innovative Financing. The paper concludes by suggesting that the Korean Government uses ODA as catalyst to promote private investment, help partner countries to mobilize domestic resource through aid to taxation as well as AfT. It was also recommended that Korea actively join international effort to increase resources for global public goods such as climate change.

20 years have passed after the collapse of the former Soviet Union. For the last 20 years, former Soviet countries were subject to turbulent rearrangement of international order. In particular, geopolitical changes in the Central Asia region emerged as the one of the most important issues facing the global community. In the twenty-first century, the strategic value of Central Asia is increasing and this region has invited the competition among the world powers: US, Russia, and China. Therefore, in the future, Central Asia is very likely be a key variable in the shifting geopolitical hegemony in the former Soviet bloc and the Eurasian continent.
This offers us a perspective for assessing not only nation-building strategies, including transition to market economies and but also synthesizing external factors that impacted this process that has lasted 20th years following the Soviet collapse. This is an essential prerequisite for the Korean government in cooperating with governments of Central Asia, for private Korean companies in managing investment risks, and also very important for establishing Korea’s entry strategy for the region.
Therefore, the main purpose of this research is to analyze factors for integration and faultlines in Central Asia that can spur change in the region or country. This research is especially important for understanding the changing international trends in Eurasia by taking into account geopolitical change and regional cooperation in Central Asia during the post-Soviet era from an academic perspective. Also, it can provide a major impetus for the Korean government in promoting its “New Asia” diplomatic policy.
This study comprises of 7 sections. After the introduction, second and third sections identify whether nation building efforts by each state is actually self-strengthening or genuine movements toward regional integration. We closely examine two factors - the causes behind of unsettled border issues and Islam, which can intensify instability among countries in Central Asia. And then, we consider how these factors can impact integration or disintegration in Central Asia. This helps understand a number of political fissures visible in Central Asia related to social change.
In fourth and fifth sections, we study the geopolitical change and characteristics of international relations in the region. Penetration of the US, efforts of Russia to regain its influence, and Centripetal force of China in Central Asia with respect to establishment of regional security of Central Asia are included. The characteristics, role, and interests and position of member countries of the Organization of Multilateral security and cooperation in Central Asia, a lead taken in CSTO by Russia and China’s lead in the SCO, are analyzed. By comprehensive understanding of the security environment and shifts in international relations in Central Asia, we can grasp the key geopolitical characteristics and foreign strategy of the relevant countries. 
In the sixth section, we attempt a detailed study on certain standout cases to assess the situation of economic cooperation in Central Asia. Especially, we outline the situation of railway infrastructure in Central Asia, and consider the strategic value and geo-economic implication of those railways, and development potential connected to regional economic cooperation. This will help us predict the economic situation of Central Asia in the future.
In the seventh section, we conclude by delineating possibilities for regional integration or cracks in Central Asia. Then, we provide implications for policies regarding strategies for into Central Asia.
This study analyzes methodically all regional conditions in Central Asia, and provides an outlook for the future of Central Asia. Therefore, this research can help readers understand the geopolitical value of Central Asia within the context of the Eurasian Continent and in connection with strategic maneuvers among the former Soviet countries. Secondly, this study can help the Korea government formulate foreign policy and establish a more encompassing Central Asia policy by understanding in depth both side of the issues related to forces of integration and disintegration of Central Asia. Finally, it provides a picture of outcomes of the transition and the process of regional change in Central Asia after the Soviet collapse, and will contribute to the formulation of entry/investment strategies for the Korean government and Korean enterprises concerning Central Asia.     

Development in diverse areas including agriculture, environment, infrastructure, logistics/transportation, and tourism has been a continuous and consistent feature along the regions surrounding the Mekong River. In case of the Greater Mekong Subregion project undertaken by the Asian Development Bank(ADB), the initial concentration of investment in infrastructure is being superseded by increasing focus on the ‘software’ aspect of development, namely efforts at facilitating trade and investment. The projects supervised by the Mekong River Commission focuses on agriculture, management of water resources, and flood control, while also looking into different aspects related to construction of dams for hydropower and its significance for agriculture and the environment.
The Mekong Institute is also an important player in the region’s development, as it oversees projects in human development, and extending the work in this area into various consulting projects. The efforts by the ASEAN-Mekong Basin Development Cooperation(AMBDC) places greater focus on such areas as infrastructure, and logistics/transportation. However, progress has been slower than ADB projects given the comparative lack of funds available to the AMBDC compared to the ADB.
The focus of the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy(ACMECS), headed by Thailand, is on agriculture, infrastructure, and tourism; based on sector cooperation between countries in the region and sustainable development. The level of cooperation in the region is expected to increase with the election of Yinglak Shinawatra as prime minister of Thailand. Also, the ASEAN economic community, which will be implemented by 2015, is expected to offer continued support for the region’s underdeveloped countries (CLMV) in various areas.
The strategies for each country as revealed in the research can be outlined as follows.
Thailand, under the leadership of its PM Thaksin, has sought to secure regional leadership while pursuing its economic and security interests through the ACMECS. It has become the unquestioned locus of development in the Mekong region in terms of its historical relations with its neighbors, geographical location, trade, investment, and economic cooperation.
Cambodia has given priority to growth, employment, equality, and efficiency through its ‘Rectangular Strategy’; with particular focus on management of water resources and irrigation, with emphasis on growth and efficiency.
Laos is engaged in project in development in water resources with aims of extricating itself from its status as a least-developed country by 2020. Its approach to the Mekong region development is strategic, as it seeks to maintain sovereignty and autonomy in the region against obvious geopolitical disadvantages as a weak power. It has maintained a strategy based on multilateralism and  regional balance in the development of hydropower, and made some notable accomplishments such as bringing the MRC headquarters to Laos.
Korea has hosted the 1st Korea-Mekong Foreign Ministers meeting in October 2011, and concluded it with the「Han-River Declaration」of Establishing the Mekong-ROK Comprehensive Partnership for Mutual Prosperity, indicating that Korea would take active part in the development of the Mekong region in the future. Given strategies employed by Thailand, Cambodia, and Laos; Korea will do better to employ the Triangular Cooperation formula, utilizing Thailand when engaging in development cooperation projects involving Laos or Myanmar. In addition, highlighting the role of Tonle Sap River in Cambodia and research for possible advantages it can offer for development cooperation in the Mekong Region will be important. It is also necessary to examine projects that Korean companies can actually undertake through detailed and accurate analysis of water resource/hydropower development in the Mekong. Last but not least, it might be necessary to make the Asia-Europe Meeting (ASEM) scheduled to be held in Vientiane, Laos a forum where measures for active participation in water resources/hydropower could be devised.

<Southeast Asia>
One of the most important characteristics of Southeast Asia seems to be diversity, which has been formed, above all, through its geographical environments and historical and cultural experiences with various countries abroad and among themselves. In spite of the diversity, there have been constant attempts to build a Southeast Asian regionalism through binding together Southeast Asian countries into a community. For example, the ASEAN leaders in 2003 agreed to establish the ASEAN community until 2020 and even signed the ASEAN Charter in late 2007, whose purpose is to build a regional identity and a regional integration.
However, there are many obstacles to the realization of the ASEAN community. For example, the big gap in the level of the economic development among the member states of the ASEAN and the lack of the will to integrate Southeast Asian markets on the part of the member states’ governments and businessmen in the region. Another problem is conflicts among the member states such as those concerning the construction of dams and the illegal immigrants and, more recently, the territorial quarrel on the Hindu temple Preah Vihear between Thailand and Cambodia.
The most important recent aspect of the external relation of Southeast Asia seems to be that with China. Southeast Asian relation with China has not only a cooperative aspect, which can be seen in the establishment of the bilateral strategic partnership between the two sides and the signing of the ASEAN-China FTA in 2002. There is but a possibility of Chinese threat to Southeast Asia too, which can be, above all, seen in the Chinese economic expansion to various Mainland Southeast Asian countries and maritime disputes over some islands in the South China Sea between some Southeast Asian countries and China.

<Thailand>
The aspects of Buddhism and the King are emphasized to show the historical continuity to influence the contemporary Thailand. For Thai political structure, the parliamentary system since the constitutional monarchy in 1932 is investigated. For the recent political change of Thailand, the 1997 Constitution and the 2007 Constitution are compared. The King Bhumibol’s traditional leadership is contrasted with the former prime minister Thaksin’s entrepreneur style leadership to look into the current Thai politics. After the description of many political changes since the 2006 coup, Thai politics is evaluated to experience an inevitable process resulted from the disharmony between the institution and the leadership. Then the problems facing Thai democracy are analyzed with some future prospect.
For the state goal and policy of Thailand, the policy statement to the National Assembly delivered by the prime minister Yingluck Shinawatra is analyzed and various policy fields are classified in detail. The foreign relations of Thailand are described with emphasis on ASEAN, the USA, and China. The diplomatic relations with Korea are studied in the context of historical development and sectoral situation along with the Thai perspective of Korea.
<Vietnam>
Vietnam has grown so fast, marking nearly 10% of annual GDP growth since early 1990s, after launching the reform policy at the second half of the 1980s. However the political reform in Vietnam has still not proceeded well, continuing the one party rule.
In order to accomplish the economic development Vietnam has focused on the integration to the international community and establishing the stable and peaceful international environment. Meanwhile conservative voices to defend the socialist regime also exist.
This trend of national policy was endorsed again at the 11th Congress of the Vietnamese Communist Party as well as the 13th National Assembly and the Government in 2011. It is suggested for the future Korean foreign policy to share the experiences and to find the ways of the sustainable development and harmonized society with Vietnam, deepening the economic and socio-cultural relationship.

<Indonesia>
The purpose of this chapter is to analyze the change and characteristic of the political and diplomatic area in the recent Yudhoyono’s government in Indonesia. The analysis level of this article is that first, the factor of historical- structural power which Indonesia’s society have been lead; second, focusing on the distinctiveness of the political power structure, political party system, political elites of Yudhoyono’s government; third, explaining the national goal and policy of the current government and measuring the empowerment of Indonesia governance; fourth, after democratization in Indonesia, analyzing the Indonesia foreign policy’ change, vision, conflict issues and meaning.
Absolutely the change of the contents and direction of the recent  Indonesia’s political and foreign area is very positive and future- oriented. The political results of Indonesia’s democratization has been influenced on the Indonesia’s foreign power and position in regional and international level. Yudhoyono’s government vision is to develop democracy, muslim and modernization with harmony. However, Money politics in Indonesia, namely the politics of corruption cartel, have been made a problem openly since after the fall of the Soeharto’s regime. Anti-corruption reform in Indonesia is very important to enhance not only administrative’s governance empowerment but also the public function of political party, parliament and the judical system. Indeed, Renovation of public organization and governance in Indonesia have been influenced on democracy and prosperity of Indonesia reciprocally.  

<Philippines>
The Philippine politics is continuously influenced by the traditional family-oriented social value system and the unequal socioeconomic class structure that formulated during the colonial period. They provide the backgrounds for the traditional ruling elite group to maintain and inherit their political privilege generation to generation. The Philippine politics has been operated under a democratic institution for a long time even it is subjected to criticism for its lack of substances. In theory, Filipinos express their political will during the periodical election, and they fulfill their self-governance through the local government system. However, in practice, such democratic institutions are easily abused by the lack of socioeconomic fundamentals for flowering the democratic values. Furthermore, the Philippine political leaders did not show their strong will to change such fundamentals. Recently, some changes could be sensed in the Philippine politics. It is followed by the generational shift within the ruling elite group. It could be seen as a simple change of the same kind with the political family from father to his son or daughter, but the behavior of the young political figures seem to be different from the older generation. They tend to abstain themselves from power abuses and to mind their political accountability.     
Even though the Philippine democratic system could not avoid the criticism for its lack of substances, the Philippine political elites gradually listen to the people’s voice to fill in the lack. Considering these tendency, Korean government need to give more efforts to earn the Filipino mind through informal diplomatic activities. Filipinos has the political culture of ‘utang na loop(debt within the heart)’, which implies the Filipino tendency to repay as much as they received. Korean government needs to concern about the poor living condition of the Filipino underclass who constitutes about 90% of the total population, and provide necessary assistance for improving the situation. Such efforts will help to grow among the Filipinos the mind of gratitude toward Korea. The Filipino public opinion will be delivered to the ruling elites and reflected to the Philippine diplomatic policy. Recently the perception rate of Korea in the Philippines is increasing rapidly thanks to the Korean popular culture. If Korean government officially engaged in the Korean Wave too much, Filipinos would misunderstand the Korean Wave as a cultural imperialism driven by Korean government. Therefore, it would be desirable for Korean government to exert more efforts to plant the mindful and helpful national image of Korea to Filipino masses by engaging in social developmental activities rather than popular cultural activities.

In 2011, it is expected that a profit of 30 trillion won would be realized in the financial sector in Korea. However, as far as profitability such as return on assets or return on equity is concerned, it is not as high as that of other major countries, and further volatility of the profitability is the highest among the major countries. Moreover, it is often said that the financial market in Korea is almost saturated. In this situation, businesses in the financial sector are required to differentiate and diversify their services to improve their profitability, and one of the ways is to expand into emerging economies, like India, that are growing fast at the aggregate level but are getting left behind in the financial sector.
This report examines the Indian financial sector, evaluates its system, and tries to suggest how Korean financial companies make inroad the Indian financial market or expand their businesses there. In addition, along with the Korea-India CEPA(Comprehensive Economic Partnership Agreement), this report studies ways to vitalize Korea-India financial industry cooperation. In particular, this paper provides the information on Indian financial industry and suggests strategies to enter the financial market and expand services in India and expand businesses in India in order to support Korean financial companies.
This paper consists of 5 chapters. Chapter 1 is the introduction, chapters 2 to 4 are the main contents, and chapter 5 concludes the paper. First, chapter 2 overviews the Indian banking industry, examines banking systems and investment conditions, and seeks ways to cooperate between Korea and India in the banking industry. Chapter 3 describes development, current conditions, and the state of competition in the Indian stock market. Chapter 3 also analyzes securities companies in India through case studies, which provides Korean securities companies with references for the penetration and expansion in India. The materials and information in this report are also valuable for the Korean government to support and back up Korean stock companies that are planning to penetrate the Indian stock market. Chapter 4 outlines the insurance industry in India and inspects related investment conditions. This chapter also provides examples in which advanced countries inroad into the Indian insurance market. Next, chapter 4 tries to recommend how Korean insurance companies enter the Indian insurance market and expand their businesses in India. Lastly chapter 5 summarizes the previous chapters and makes several alternatives to strengthen the relationship between Korean and Indian financial sectors.

The central China adjacent to the coastal region of China present significant differences with the coastal region in various manufacturing environments, such as wage level, stable labor supply, and land price. When the coastal region was suffering from the global financial crisis, the rapid development of the inland region helped the Chinese economy to display its undiminished strength. In particular, as an area of high population density, the central region serves as a large market composed of 360 million people, possessing an industrial infra of considerable standards as well as an abundant low-income labor force. It is located in the center of major Chinese cities and is also close to the coastal region. In this aspect, the central region is being emphasized as the area for labor-intensive industries and export processing industries in China to move into, the proposition being supported by the presentation of various related policies. On the other hand, the coastal region, an area where many Korean companies have expanded to, presents worsened business environment in relation to lack of manpower, increased rent, strengthened environmental regulations, and industrial advancement, thus leaving green field-type investment companies with no other choice but to move their production base.   
Hereupon, this study analyzes the application possibility of the production base of the central region in China by examining whether the production factories of Korean SMEs that have expanded to the coastal region to achieve cost reduction and export processing can be moved to the central inland region and by observing which regions these factories can be moved to and which businesses present good prospects.
In this regard, this study selected 5 central cities (Zhengzhou, Xuchang, Hefei, Wuhu, Taiyuan) with favorable export environment that are located at a relatively close distance from the 3 coastal cities (Qingdao, Tianjin, Suzhou) that have the largest number of Korean manufacturing SMEs. And this study analyzed the cost reduction effect according to company transfer as well as the industrial network environment of central cities. The cost reduction effect was estimated in consideration of the reduction of labor cost, the greatest strength generated during company transfer, as well as the increase in transport cost, the greatest weakness. The industrial network environment was analyzed through the main industrial complexes in the relevant region.
According to this study, the cities with the largest cost reduction effect were presented as Tianjin of the coastal region and Xuchanag of the central region. As for Qingdao, cost was increased through moving to the remaining 3 cities in the central region excluding Zhengzhou and Xuchang. And the creation of industrial cluster was different according to city in the central region. Hereupon, companies that are considering to move their production base to the central China must analyze both cost reduction effect and industrial network environment. Furthermore, it is important to find a method by which SMEs can transfer in cooperation with the production chain of related businesses. Also, re-investment must be made to maintain the amount of cost reduction gained through moving to inland transfer at a “narrow superiority” in the aspects of technology and quality. In addition, to support companies that wish to transfer to the inland region or are currently examining the possibility of the transfer, the Korean government must construct matching platforms between coastal SMEs and central inland cities, monitor related information, such as the industrial development plan of main central cities, and strengthen technical cooperation with relevant local authorities in China.