This study is to investigate the issues of socio-economic development in Ethiopia and Kenya and to propose how Korea can improve ODA to these countries. Ethiopia and Kenya are major economic powers in the Horn of Africa. There are a few countries with unstable government in  the region causing problems to neighbouring countries. During the last 20 years, Somalia, as neighboring both countries, has been unstable and created problems in the continent and in the off shore.
Ethiopia has a long history and suffered from 17 years of socialism in the 1970s and 1980s. After a new government was established in 1991, the country has been trying to promote her economy with a market driven economic system. Since year 2000, the Ethiopian economy has  been achieved one of the highest economic growth in Africa. However, there are many issues that could be improved socio-economic development for the country.
Kenya was a British colony until 1963 and had some economic infrastructure inherited from the colonial rule. However, the economy was not performing well during the last five decades due to political instability, corruption and mal-management. Kenya provided  a long term development plan 'Vision 2030' in 2007, and has given priorities to promote key industries. The key industries were encouraged foreign direct investment and government support. Nevertheless, their economic record has not been successful and Korean ODA could be beneficiary to improve social and economic environment.
This study suggests how Korean ODA can enhance socio-economic capacity of the two countries. By promoting these two economies and social development, the Horn of Africa will be stabilized.